It’s only natural for every driver to want to pay as affordable a price as possible for their car insurance. However, there are many factors at play that can influence how much you might pay for your plan. In the end, your auto insurance premiums are unique to you, and they represent the level of risk that you pose to an insurer. Those who have higher risks of filing claims will therefore pay more in most cases. 

Auto insurers want to know how likely they are to have to pay money on your behalf. If they have a higher chance of doing so, that equals more money out of their own pockets. As a result, they are going to charge higher premiums to drivers who have higher claims risks. It is completely common, therefore, for two drivers to have identical policies, but pay very different premiums. 

Some of the most common factors to influence rates include the: 

• Type of vehicle you drive, including its size and performance specs. 
• Value and age of the car. More expensive cars are more expensive to insure, though they will depreciate over time, which can alleviate your cost burden. 
• Features of the vehicle, including custom parts and high-value technology. Additionally, vehicles with strong safety features might even cause rates to drop for the policyholder. 
• Location and usage of the vehicle. For example, those who have short commutes as opposed to long ones have fewer chances to have wrecks. They might therefore be able to save on their rates. 
• Driver’s claims history. If you make a lot of claims on your policy, then you are going to cost your insurer more money. They might have to charge you more. 
• Deductible on your plan. Those with lower deductibles will often pay more money for coverage, because low deductibles shift more of a cost burden onto the insurer. 
• Discounts. The more discounts you qualify for, the more you are able to save overall. 

Top Ways to Save on Your Auto Premium 
There are many practical, easy ways to save money on your auto insurance premium. 

• Consider raising your deductible. 
• Keep up your good driving record by not getting tickets. 
• Drive a car with safety features such as anti-lock brakes and airbags. 
• Install an anti-theft device on the vehicle. 

By learning how auto insurance rates are determined, you will be able to better navigate exactly why your rates are priced the way they are. Knowing the factors that insurers commonly use to set rates can also help you when choosing both your coverage and when buying a vehicle.