No matter what kind of coverage you desire, you certainly want to find the lowest auto insurance rate possible. A wise car insurance shopper should become educated about the various factors auto insurance providers used to determine rates. At the most general level, car insurance rates are determined by the estimated “risk” level of the driver. The lowest car insurance rates are quoted to those drivers who are perceived by the provider to carry the lowest risk. Of course, it is impossible for auto insurance companies to know for certain how likely it is you will get into an accident. Instead, providers use a series of calculations that take into account local and national averages.

The factors that may affect your car insurance rates in the State of Texas include:

• Type of car you drive – Car insurance providers assume that someone who drives a sports car is more likely to speed than someone who drives an SUV, therefore placing him/her at a higher risk. The insurer may adjust the premium substantially if the deductible is increased, hence reducing the insurer's exposure.

• The area where you live – Geography, population density, culture and other local factors have an impact on how likely you are to have an accident. Insurance providers attempt to take such factors into effect when calculating your auto insurance rate.

• Your claims history – Obviously the more accidents you have had, the more likely it is that auto insurance providers will consider you a risk, and consequently, you can expect higher rates. Texas is a state where insurers count incidents regardless of “fault” in determining probability.

• Your credit score – Making the assumption that a responsible person will be a responsible driver, the best car insurance rates are given to drivers with impeccable credit histories.

• Your age – Statistically speaking, mature drivers have fewer accidents and therefore can expect to be quoted low auto insurance rates. If you are over the of 65 you may however notice as rate increase as some insurers believe that reaction time and awareness may diminish thus creating risk that may outweigh the drivers long term experience.

• How you use your car – The more miles you drive each day, the higher your probability of accidents. How you use your car—for business, pleasure, or simply to get to work—will have an impact on whether you will be able to find a low car insurance rate.

Realize that there are three kinds of insurance companies in the State of Texas: preferred, standard, and nonstandard. Preferred companies offer the best car insurance rates, while standard companies are usually higher. If you encounter an insurance company that seems to target drivers with poor records or bad credit, it is probably a nonstandard company. In some cases you will find that an insurance company is a group of companies, which includes one or more provider in each class. They give the best car insurance rates to the least risky clients through their preferred companies, the higher rates to the more risky drivers through the standard or nonstandard providers.