Your driving record plays the biggest role in the determining your insurance rate. Speeding tickets, DUIs and other major violations cause rates to climb exponentially. Even minor infractions will be taken into consideration. States implement a points system where points are deducted based on the severity of a ticket. When requesting free car insurance quotes, an insurance company will check your driving record and use your remaining points balance as a major input into their calculation. It is even possible to be denied coverage if the remaining points balance falls below a specific threshold.

Younger drivers, especially teenagers, will receive a much higher rate due to their driving inexperience. Alternatively, drivers between the ages of 40 and 50 will get the best rate. As you near retirement age, expect to see you an insurance quote rise due to possible health issues such as poor vision and a slower reaction time.

Larger vehicles such as SUVs, trucks and vans typically cost more to insure. On average, they are more expensive, and therefore, cost more to fix or replace. They can also create more damage if involved in an accident. In some cases, smaller sports cars can be just as expensive to insure due to their speed and cost. Insurance companies are concerned about the value and replacement cost of a vehicle. A number of safety devices such as antilock brakes, front air bags and side air bags help lower an insurance quote.

Demographics are another factor that can have an effect on free car insurance quotes. Drivers who live in a larger city will typically pay more than smaller city residents. Insurance vendors use statistics such as accident frequency, theft rates, the number of claims filed and many other inputs to create a base index that will define how expensive it is to provide car insurance in a specific area.

Although they play a smaller role in the overall formula, gender and marital status can also factor into online car insurance quotes. Statistically, married women on average pay lower rates than unmarried men.

As you can see there is not one single component that will magically give you a low insurance rate. Driving record, age, where you live and other important factors are taken together to determine what your rate will be.

Tip #1: Compare rates
There are hundreds of insurance companies with hundreds of car insurance rates. Comparison shopping is vital and will result in a better rate.

Tip #2: Increase the deductible
One of the biggest determinants of auto insurance rates is the amount of the deductible or the amount of money the car owner pays before the insurance company pays. Increasing the deductible amount can significantly lower the monthly car insurance rate.

Tip #3: Evaluate the age and equipment of the vehicle
The age of a vehicle influences auto insurance rates. The value of older vehicles is less, so their insurance rates will be less. Certain safety equipment such as air bags, anti-lock brakes and alarm systems will lower insurance rates.

Tip #4: Evaluate the age of the driver
Age is of critical importance when insuring drivers. Senior drivers over age 50 can get much lower rates than younger people between 18 and 25. But young people who have good grades in school and who have taken drivers training classes get lower rates than their peers who don’t meet these criteria.

Tip #5: Evaluate the sex of the driver
Women of any age receive lower car insurance rates than their male counterparts.

Tip #6: Reduce the amount of driving
Driving fewer miles each day can significantly reduce auto insurance rates. Using the bus system or participating in a carpool has definite financial benefits for car owners.

Tip #7: Reduce extra coverage
Insurance policies can include many unnecessary features. Such features might be towing coverage in case of a breakdown, roadside assistance to repair minor mechanical problems, provision of a rental car in case of accident or replacement of a broken window or windshield. While these are convenient features, they definitely increase the car insurance rates.

Tip #8: Drive smart
The driving history and habits of the owner are of prime importance to the cost of the insurance. Smart driving results in lower car insurance rates.

Several permanent factors decide what your car insurance rates will be, regardless of where you live. Insurance providers will first look at your driving record to determine if you are a safe driver. If you are in a higher risk bracket, meaning you have filed many claims or have had more driving accidents, this will result in you having a higher car insurance rate. A car insurance company will also look at your credit history. The lower your credit score, the higher risk you will be considered to insure — also resulting in higher insurance costs. The type of car you drive will also be considered when a company gives you an insurance quote.

Now is when the location-specific criteria come in. A car insurance company will then look at the statistics for the area in which you live. An outlying suburb with low crime will get you a much better rate than a place in the heart of the city, close to major high crime areas or heavy traffic. Car insurers base the likelihood of you filing a claim based upon your zip code. Throughout the years they have increasingly improved their ability to pinpoint areas that are the most likely to have a certain risk factors. If you are moving for a job or some similar reason, you need to be aware of what the costs will be in your new home.

There is little you can do to change the factors that affect your car insurance rate. If you can’t afford the luxury of moving to a more desirable location, you are stuck with everyone else who has to pay the high premiums associated with living in a high-risk area. If this is a case, discuss discounts you may be eligible for with your car insurance agent. Many times you can minimize your premium by having certain safety features on your car or by negotiating a lower rate based on your loyalty to the insurance company. But, regardless of the discounts you are eligible for, transferring your title and registration to a new state will have an effect on your insurance rates. When considering living expenses in your new home, this is something you should consider.

Or do you?

It really depends. If you have had a spotless record up to this point you probably have nothing to worry about. However, if you have had an accident or any other infraction before you were rear-ended then your chances of seeing a spike in your premiums will greatly increase. This is because insurance companies can view you as accident prone for a length of time that is only known to them and will vary depending on the company you are with.

Time Heals All

Many companies have a forgiveness policy that writes off past accidents and tickets after a predetermined length of time. The length of time varies from company to company but averages about three years, with some offering as little and as two years or as much as five years. If this is the case there is less of a chance of your premiums going up.

Define Fault

Another aspect that will come in to consideration is who the authorities rule to actually be at fault during the accident. This is especially true in accidents that are a little more complicated than a simple rear end collision. While you may feel that the maniac in the other car was clearly at fault as you went through the changing light, the police on the scene may view it completely differently.

Accident Frequency

The actual number of accidents you have been in, even if they are all deemed no fault, will have an adverse effect on your insurance rates. Your insurance company will most likely feel that even though the police found you innocent of any wrong doing, there has to be some reason as to why you are continually getting into accidents. Are you cursed? Does someone have a personal vendetta against you? All the insurance company knows is that you’re costing them money. They may even feel like you are purposely staging accidents to get some extra cash.

If you have recently been in an accident that was no fault of yours but have still seen a rise in your insurance rates you may want to take these factors into consideration. If you feel that none of this applies to you the best thing to do is contact your insurance representative. They will be able to give you the information needed to argue the increase or at least to understand why.