Car insurance premium is what the insurance companies will be charging you monthly for the coverage that you want from them. There is no set car insurance premium of a company or a service that anyone can quote. It depends upon a lot of things and similarly can be affected by many factors too.

Car insurance premium charged by one insurance company would be different from what the other car insurance companies would be charging for the same service from the same consumer with the same car. Varying car insurance premium is basically the reason why consumers are advised to shop extensively, get different car insurance quotes from dissimilar companies, compare them and then make the final decision in order to avail the opportunity of cheapest car insurance rates.

Now let’s look at some of the factors that can affect car insurance premium.

• The first thing that could affect a car insurance premium is the gender of the driver. This is not because an average insurance company is a sexist firm, but because statistics have helped the companies evaluate that an average female driver is far safer on the road than an average male driver; therefore they deserve a discount. So if you are a female driver than on the average you can enjoy a 10% discount on your car insurance premium.

• The other equally important factor is the age of the driver. If you are a young driver (and for an insurance company, anything under the age of 25 is young) then you are at a higher risk according to the car insurance company and would therefore be charged a higher car insurance premium than if you were somewhat older and experienced.

• If you are married and your spouse is equally responsible while driving, then this fact can affect your car insurance premium. Buying multiple insurance policies from the same insurance company can lower the car insurance premium.

• Sadly, where you live, will also be heavily affecting your car insurance premium. If according to the car insurance company you live in a high risk area then you can expect higher car insurance rates. A high risk area includes places where the crime rate is high and where there is increased occurrence of natural disasters like earthquakes, tornado’s, hurricanes etc.

• Your driving history is something, which has obvious effects on the car insurance premium. The safer the driver you are and the clearer your history, the lower insurance you are going to pay in future.

• Similarly if you have a rusted, almost broken car then don’t hold your breath waiting for someone to offer you cheap insurance rates. Keep a car in a sound condition, that have a less chance of breaking down if you are looking for some nice insurance rates. Similarly if you keep a car which is on the wanted list by car thieves, then again your insurance premium is going to be high.

It is evident therefore that there are more than a few factors affecting the cost of car insurance premium.