Most of us have a car and it is only usual or expected that we also have insurance for it. There are many providers of car insurance that are also full service insurance companies. This means that they also deal with home, fire and other types of coverage. However the most important part in deciding what is the right kind of insurance one should get still boils down to overall cost of the premium.

Some variables that are under our control can actually help us lower our premiums on our car. This article looks at some ways that this can be done, and also at some factors that are equated into the way your premium is computed. The first way we can do this is to consolidate our policies.

Consolidating policies means that some home and life providers do also provide auto or car coverage. By negotiating with the provider in getting all the needed types of insurance from them then one can basically avail of a bulk discount. This is not only true for auto coverage but other types of coverage as well. Consolidating your policies on your insurance needs is a smart way not only in reducing costs for your car but for your other policies as well.

Where one lives will also have a big factor in reducing or lessening a car premium. If you live in an urban area, there is more risk for theft and damage. Thus this is a factor seen in why those living in the city pay much more than someone living in the countryside for the same model and make of car.

The age and condition of your vehicle will also affect the premium. If you have an older car and also not classified as a sports sedan, then expect a lower premium. Usually when one buys a newer vehicle, one is expected to pay a hefty premium.

Some premiums are based on the actual mileage that you run per year. Thus you are insured up to the certain number of miles for the duration of the premium. Unfortunately once you go pass the stipulated mileage, then you become uninsured, so you may have to buy a new policy or renew or extend it.

One variable that cannot be controlled in applying for a premium is possibly gender. Your gender in fact will affect how much you pay for your car premium. Women tend to have a lesser statistical chance of incurring or being involved in an accident. Thus women will tend to pay lower premium. If you are a couple applying for car coverage, then it is wise to have the woman apply as the primary driver and the man as the secondary driver to reduce costs.

A big factor is also age. Studies have shown that older drivers are less likely to make a claim and thus are more attractive to companies. Thus lower premiums are charged to older and more mature drivers while younger drivers are charged more. This is based on the logical assumption that younger drivers are more reckless and more accident prone.