Everyone wants to pay less for their insurance especially because insurance is a grudge purchase. We do not want insurance, but we definitely need it so let us look at some factors that influence our car insurance premium and identify ways of lowering it. There are two types of factors; ones we can change and ones we cannot.

Factors We Cannot Change

Age is an important factor in determining vehicle insurance premiums. Statistically young drivers carry a higher risk of having car accidents than their older counterparts. Even if you are a mature young adult you will still be grouped along with the hot-blooded and care-free youth and consequently pay higher insurance premiums.

Statistically women are a lower risk than men when it comes to cars. Danica Patrick might be the exception, but most women do not feel the need for speed and are thus less likely to have accidents and cause less damage when they are in accidents.

If you are married, you are statistically deemed a lower risk by insurance companies. Not many people change their marital status just to get cheaper insurance, so we have lumped this one with the factors you cannot change.

Factors We Can Change

Where you live is a major factor in determining insurance premiums. This factor influences both the probability of having your car stolen and the probability of having accidents. Urban areas high in crime and traffic are dangerous for your beloved vehicle. The suburbs and rural areas are far safer, so you will pay less on your vehicle insurance if you live in these areas. Insurance companies have gathered so much detailed statistical data on theft and accident locations that moving one block away could decrease your insurance premiums dramatically.

Your vehicle itself is a prime factor in determining premiums. The more expensive it is, the more you will pay. The more powerful it is, the more you will pay. The more safety features it has, the less you will pay. Engine size, tracking devices, airbags and even color are factors that influence your premiums. Before you buy a new car, check with an insurance broker how much the vehicle will cost to insure and adjust your choice based on the feedback you receive.

Driving violations and accident history are used by insurers to determine how good of a driver you are. If you frequently get speeding fines or have been arrested for driving under the influence of alcohol then expect to pay almost three times more for your vehicle insurance than other drivers.

Have you maxed out your credit card and have not paid your bills? If you have a bad credit rating then you will end up paying more on your insurance premiums. You are probably wondering how your credit rating has any impact on the risk of you having an accident or having your car stolen. The answer is not much, but it does indicate to insurance companies how likely you are to not pay your premiums or to cancel your policy. Insurance companies spend a lot of money on advertising and administration so they want to make sure that their clients stay with them once they have taken out a policy.

If you are looking for cheaper insurance, see if you can do something about the factors that are under your control and do not stress about the ones that are not.