Your auto insurance premium is what your insurance provider charges for your coverage. That premium is determined by many factors including:
Your Age – Being that young drivers have less experience behind the wheel and are more likely to speed, they are more likely to get into an accident. Therefore a young drivers rate will be higher than someone with more years of driving experience. Haing your license for more than three years usually will get you some kind of price break on you auto insurance premium.
Your Driving Record – This is probably the main factor in determining your auto insurance premium. If you have multiple accidents and tickets you are considered to be a much higher risk than someone with a clean driving record. High Risk = Higher Premium. On a positive note, once the activity on your records drops off you will see the significant drop in your premium.Where You Live – If you live in a high traffic area like Los Angeles or Orange County, you will pay a higher premium for your insurance than someone who lives in Lancaster, Palmdale or Tehachapi.
Reason being that there are simply more accidents in heavily populated areas due to more people driving. Also there are more claims of auto theft in bigger cities.
Type of Vehicle – The type of vehicle you drive directly affects your premiums. Owners of newer cars typically pay higher auto insurance premiums as do certain models that are prone to theft. Every vehicle also has a safety rating and specific safety features. Your vehicle’s safety rating will also affect your rate. For example, a driver with a car that has a high National Safety Rating will typically pay lower rates; as will the driver of a car that has airbags and an anti-theft device.