Believe it or not, a car insurance premium is an expense that Americans have some control over, at least to a significant degree. Numerous criteria determine the amount of a driver's premium; a good number of these are dictated by the consumer's behavior. 

The factors influencing an auto insurance premium are essentially based on statistically-proven risks posed by a specific group. The more elevated the risk associated with a consumer, the higher the car insurance premium. It is the insurers' claims experiences that account for the differences in an auto insurance quote from one insurance broker to the next. For instance, one insurance broker might consider your occupation more high-risk, while another may charge you more because of the area in which you live.

The following is a comprehensive listing of the factors that impact a consumer's car insurance premium and are relied on by many insurers:

1. Driving distance to your job

2. Multiple automobiles: Drivers who insure two or more vehicles with the same company pay a lower car insurance premium.

3. Insurance status: An auto insurance quote depends on whether or not the driver is currently insured and how high his policy limits are. The amount of a policyholder's coverage and deductible influence the car insurance premium. A higher deductible gives rise to a lower car insurance premium.

4. Age: One of the key factors in calculating a car insurance premium is age. Statistically, consumers who are more than 25 years of age are less likely to be in an accident than those who are less than 25 years old. Consumers aged 50 to 65 constitute the population with the safest driving record. 

5. Uses of vehicle (commuting, business use, recreational only). 

6. Lapses in coverage: This will result in a higher car insurance premium.

7. Anti-theft devices: Drivers who install anti-theft devices that are approved by their insurance company, will benefit from a lower auto insurance quote since they are reducing the risk of theft.

8. Abstention from smoking and/or drinking: Being a non-drinker and/or non-smoker, an incentive that is gaining ground among insurers, translates into a lower car insurance premium.

9. Number of years that a driver has stayed with the insurer and maintained a clean record

10. Parking your vehicle in a garage rather than on the street

11. Credit history: It is recommended that drivers monitor their credit score since a good credit rating can yield a lower insurance premium. A good credit rating tells the insurance broker that the consumer is financially-responsible and that, consequently, the individual is also a responsible driver.

12. Safe driving course: A young driver who completes a driver training course or a senior who is 60 years and older and completes a senior driver defensive course qualify for a lower car insurance premium.

13. Years of driving experience

14. Vehicle make and model: Driving a pricey, trendy, new car subjects the consumer to a higher collision car insurance premium, since it will cost more to repair the automobile. As the vehicle ages, however, the car insurance premium may decrease.

15. Multiple policies with the same insurer (i.e., homeowner's).

16. Place of residence: Drivers residing in a big city, where accidents occur more frequently, will pay a higher car insurance premium than those living in a rural area. Also, those residing in cities with a high car theft rate will face a higher auto insurance quote.

17. Gender: Statistics show that female drivers are safer; therefore, they tend to benefit from a lower car insurance premium. Caveat: The trend might no longer hold true, as the number of women driving continues to increase.

18. Annual miles driven

19. Marital status: Drivers who are married are usually entitled to a lower auto insurance quote than drivers who are single with an identical driving history.

20. Occupation: Statistics have drawn a link between a driver's occupation and insurance risks.

21. Driving violations and accident history: Insurance companies consider drivers with previous accidents or driving violations (DWI, running red lights, speeding tickets, reckless driving, etc.) as being more risk-prone and therefore slap them with a higher auto insurance quote. On a positive note, an improvement in the driving record triggers a reduction in the car insurance premium. 

22. Installment payment: A consumer who pays in installments may face a higher car insurance premium.

23. Education and good student status: A driver who pursues higher education and maintains good grades can save as much as 5-25% on his or her car insurance premium.

Auto insurance quotes vary from company to company and from state to state.

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Key Factors that Influence Auto Insurance Premiums
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