There are a number of factors that determine the car insurance rate a driver will receive. Perhaps the most important factor to insurance companies is the level of experience the driver has. It is this history behind the wheel that allows experienced drivers to secure cheap car insurance quotes and policies.
The primary reason experienced drivers are able to obtain cheap car insurance is that they have had the hours behind the wheel necessary to expose them to a number of different driving conditions (rain, snow, etc.) and situations (other driver mistakes, incidents that require swift action and reaction, etc.).
Less experienced drivers have spent less time on the road, and have had fewer opportunities to be involved in a variety of situations. As a result, the younger or less experienced driver might not react as quickly or as appropriately in a potentially dangerous situation as someone who has been driving for years. This lack of experience in different situations means a higher potential for accident or incident that will cost the insurance company more money. Because more experienced drivers usually don't pose this type of cost risk to insurance companies, they are generally offered cheaper quotes and rates.
Another reason experienced drivers are able to secure cheap car insurance is that generally, more experienced drivers have a longer credit history, and thus a history of paying other insurance companies on time. Less experienced drivers without a proven history of payments to auto insurance companies could be perceived as a potential payment risk and thus be given a higher rate when requesting a quote.
Finally, another reason why experienced drivers get cheaper car insurance is the industry statistics about less experienced and younger drivers. Statistics show that less experienced drivers get in more accidents and are more costly for insurance companies. Because of this, even if a less experienced driver has a stellar record in the short time they have been driving, they may be charged higher rates because of industry trends. Along these lines, because inexperienced drivers get into more accidents and cost more money, insurance companies must make sure that they mitigate their own losses (and cover the costs of accidents as a result of inexperienced drivers) by charging higher premiums to all inexperienced drivers, not just those who are involved in accidents.
Location, type of car being insured, gender and driving record are all important factors that auto insurance companies consider when offering insurance and prices to potential clients. However, perhaps the most important is the level of experience the driver holds. As a result, more experienced drivers will receive cheaper car insurance quotes and rates.