Auto insurance premiums are - just like the price of other services and goods you buy - affected by a large number of factors. Costs affecting your final insurance rate usually include: auto repair costs, inflation, auto repair costs and medical costs. Changes such as relocating, purchasing a new vehicle, removing or adding a driver or changing the way you use your vehicle may also affect your premiums.
Location makes a difference. People living in areas with little traffic are likely to pay lower rates than those living in suburbs or congested cities. Metropolitan areas have the most complaints of vandalism, theft and a higher number of accidents which can lead to higher premiums.
Some of the risk factors that are likely to affect the premium you will pay for auto insurance include: purpose for using the car, miles driven per yer, driver's gender, age and marital status. If you are looking for a good deal, you may want to consider saving on insurance based upon: theft protection devices, education, occupation, credit rating, accident claims, vehicle type, driving violations, driving record.
Insurance premiums can vary based on the year, model and make of a vehicle. If you're shopping for a new car, make sure you ask your agent how much it's going to cost you to insure the car you're planning to purchase.