One very important factor used by car insurance companies to determine their customers’ car insurance premiums is the age of the customers. People in their 40s and 50s are usually paying the lowest insurance rates. Drivers from those age groups are considered to be among the safest and most experienced drivers on the road. Also, they file fewer claims than older or younger drivers. After the age of 25, the car insurance premiums will begin to drop and they will start to rise once again once the drivers enter their 70s.

Besides age, the next major factors can affect the price of insurance:

Gender. Young male drivers will pay more on their premiums compared to young female drivers because they are more likely to file an auto insurance claim. On the other hand, male drivers who are in their 40s, 50s, and 60s are filing fewer claims than female drivers from the same age groups and for this reason, they will pay less on car insurance.
Driving record. Drivers who have multiple traffic violations will pay more on insurance premiums than drivers with a clean driving record. Car insurance claims, speeding, at-fault accidents and other traffic violations can increase the price of insurance. The good news is that those points and violations will no longer be taken into consideration after several years.
Address. Drivers who live in areas with higher rates of accidents, insurance claims, car thefts, or vandalism will be charged extra on their car insurance premiums.
Vehicle value. An $80,000 vehicle will cost more to repair than a $15,000 vehicle, and this is the reason why expensive vehicles cost more to insure. Generally, newer vehicles cost more, due to all the technology and the latest materials used to create the car. People who want to pay cheaper rates should purchase a used, but still reliable, car.
Safety rating. Safer vehicles are cheaper to insure. Passengers of a safe vehicle are less likely to suffer severe injuries in a collision and that means the insurer will save money on medical bills.
Mileage. The annual mileage is one of the most important factors analyzed by the insurers to determine the insurance rates. Drivers who use their cars to commute to work will pay more on their insurance. Car insurance companies consider that persons who stay more on the roads are more likely to be involved in accidents.
Discounts. Drivers who are in their 40s and 50s can take advantage of several discounts such as bundling discounts and safe driving discounts.
Coverage limits. Drivers who are in their 40s and 50s are likely to have higher coverage limits and additional insurance options. For these reasons, the price of insurance will be higher.