The average car insurance policy price is derived from a variety of factors. Many of these variables are common knowledge and make sense for the most part, but it’s always a good idea to update yourself on what insurance companies are looking for when determining how much your coverage will cost.

Driving History – The price of your auto insurance policy is determined from 6 main areas. The first is your driving record. The most important thing to remember is that the better your driving record, the lower the total cost to insure your car. This would include car accidents, speeding tickets, and believe it or not, if you have been without insurance for several years. The good thing is that you can directly control many of these factors. Focus on maintaining a clean driving record and this area shouldn’t make your rates outrageous.

Coverage Amount – Do a self-test at some point and call your insurance company to see what impact raising and lowering your deductibles and coverage amount have on the price of your insurance. Raising a deductible lowers your monthly payment. Raising the deductible has the opposite effect. The same goes for the actual coverage amounts.

Age – Case studies have shown that younger drivers are involved in more accidents than older drivers. This possibility of being involved in a collision is the result of inexperience behind the wheel of a car. Generally speaking, most insurance companies charge more for people under the age of 25.

Vehicle model and driving mileage: If you’re interested in that fancy new sports car, you may want to check how much it will affect the price of your auto insurance policy. Thanks in large part to theft, vehicle costs, and security records, some cars command a higher premium than other vehicles. As if that wasn’t bad enough, the number of annual miles you put on your vehicle by driving can increase your auto policy. The average used is 10,000 miles in a year. If you exceed that total, then you can expect a rate increase based on your increased potential to be involved in a car accident.

Your Residence: It’s a pretty safe bet that you’ll pay more for your auto insurance policy if you live in a big city compared to a nice farm in the country. The city likely has more thefts and accidents, which leads to higher costs absorbed by the insurance company and then passed on to the consumer when insurance companies price your auto insurance policy.

Hopefully, this information can help you zero in on a few areas within your auto policy that you can review with your insurance agent in hopes of actually lowering your auto insurance rates instead of increasing them.