Factors that are considered by insurance companies to determine the premium for your car:

1.Your Driving Record: Premium rate can be lowered with a good driving record. You have to pay more if you got tickets or had traffic violations or accidents. Also you need to pay more if you are not having insurance for many years.

2.Your Living Place: The place you live and the place you
keep your car, both are taken into consideration when insurance companies determine premium.The condition of your living place and garage gives indication of the level of safety for your car. Also a congested city is more accident prone than a suburb. So premium rate is higher for cities.

3.Your Age: Usually, under 25 drivers are associated with higher risk. Matured drivers have fewer accident records compared to the teenagers. So the companies charge more for the teenagers or the less experienced than the experienced or above 25 drivers.

4.What is your Annual Mileage: Insurers charge higher rates from people who drive more than the national average mileage per year. As you drive more, the chance of getting involved in an accident increases and so the likelyhood of your filing a claim also increases.

5.Good Credit Scores: Most of the insurance companies use credit scores to determine the premium rate. Statistically a good credit score holder is less likely to file a claim and so insurance companies tend to keep the premium low for
such individuals.

6.Cost of Your Car: Costly cars tend to incurr more in premiums as the cost of repair for such cars is higher. Also trendy and costly cars are in the likelihood of being stolen. In such cases keeping adequate safety equipments in the car can lower the premium a bit.