A first time auto insurance buyer is likely to be charged a higher premium than a motorist who has had insurance for many years. This can be due to a discount for renewing with the same insurance company as you suggested. Many insurance companies will extend customers a renewal discount if they are able to provide proof of prior insurance coverage.

Even if it is your first insurance policy, factors such as the amount of time you have been licensed will affect your rates. For example, a person that is an inexperienced driver and is buying insurance for the first time will normally pay more than an experienced long time licensed driver that has been under other people's policies and is now buying their own auto insurance policy.

Insurance companies in most states are allowed to use a variety of factors to determine a policyholder's premium rate. The cost of auto insurance for different drivers varies, as the level of risk for the insurance company varies.

The core factors most states allow insurance companies to use when determining rates are:

• Driving record
• Years of driving experience
• Type of Vehicle being insured
• Vehicle Usage
• Geography - where you live and where you drive your vehicle
• Gender
• Age
• Marital Status
• Credit History
• Claims History
• Whether or not you currently have car insurance

If you are looking to buy an auto insurance policy for the first time you can easily go through our online quoting system to get a car insurance quote. You can also learn more about insurance terms by reading Types of Auto Insurance Coverage Explained.