How Car Insurance Rates are Determined

is very different than shopping for other items. Unlike other consumer items, there is not one set price that everyone pays for auto insurance. In fact, the premiums people pay to insure their cars can vary dramatically. Here are some of the factors that may influence how much you pay for auto insurance:

Your Driving RecordYour driving record plays a big role in determining your premium. If you've been in an accident that was found to be your fault or if you have traffic offenses on your record, you'll probably have to pay more for your auto insurance.

Why? Because statistics indicate that such drivers generally have repeat accidents or violations within three years. Drivers with poor records may have trouble finding insurance, but there are state-regulated plans called "assigned risk pools" or "shared markets." In these plans, the state assigns a company to provide coverage for a high-risk driver.

The Car You DriveCertain models of cars may be considered risky because they cost a lot to repair, are frequently involved in , as well. A teenager who drives your car or a spouse with a poor driving record will probably increase your insurance rates.

GenderA young man under the age of 25 usually pays more for car insurance than a woman of the same age. That's because young men are involved in more accidents than young women and have more than three times as many fatal accidents.