Factors that impact auto insurance premiums

Auto insurance rates vary from person to person, even though it may seem like the offerings are the same. But no two drivers are the same, and certain factors may be affecting drivers’ auto insurance premiums without the motorists even realizing it.

Automotive insurance provider State Farm says most insurance companies consider several factors when calculating the cost of car insurance. Recognizing which situations can increase or lower costs can help drivers get the best rates and coverage needed. Although it can be tempting to reduce the price of insurance by choosing lower amounts of coverage, there are other ways to make insurance more affordable.

-- Move. Insurers typically look at where a person lives when calculating rates. Those people who live in highly populated, urban areas likely will have higher premiums than others who live in more rural towns. That’s because greater population density often translates into more people on the road -- and a greater chance for insurance claims due to fender benders or theft. By moving, a person may be able to cut rates.

-- Gender and age are factors. One can’t step into a time machine, but it’s helpful to know that growing a little older can lower insurance premiums. The financial advice source Money Crashers say that young men usually incur higher rates than young women because statistically men get into more accidents. However, as a person moves into his or her senior years, the roles reverse. Older women may see higher rates than men the same age.

-- Keep make and model in mind. The type of vehicle driven can affect insurance premiums. Certain insurance carriers will increase premiums on vehicles that are more susceptible to damage. Flashy sports cars or those that do not score as highly on vehicle safety ratings calculated by industry experts may result in high premiums. Vehicles that are desirable to car thieves also may cost more to insure. Researching vehicles prior to purchase and checking the rates for those cars or trucks with insurance companies can help keep costs low.

-- Commuters may pay more. Individuals who use a car for business or frequent commuting may pay more than people who drive less because statistically there is a greater risk for an accident, says State Farm. Reducing commute times can lower premiums.

-- Tie the knot. Insure.com says married couples have been found to be less of a risk to insurance providers statistically than those who are single. A study by the National Institutes of Health found that single drivers were twice as likely to be in an auto accident as married drivers. Combining policies also can help married people save.

-- Follow the rules of the road. Drivers who have moving violations, drink and drive or engage in otherwise risky behavior behind the wheel may see their rates soar.

Insurance companies weigh factors such as driving record, age, locality, and more when assessing premium costs. Drivers have some room to get lower rates by knowing the factors that determine their premiums.