Auto insurance rates are based on a variety of factors which can differ depending upon state insurance laws as well as individual insurance carrier's underwriting guidelines.

The basics though of how an insurance rate is that the premium you pay consists of a "base rate" plus or minus amounts reflecting factors such as your age, gender, marital status, driving pattern, vehicle type, driving record and claims history.

There normally is a different base rate depending upon the type of car being insured and the geographical area where the driver resides. While individual companies may differ in the amounts they assess for each factor, the major rating factors are fairly universal.

These factors may include:

• Your age: Statistics show that, as a group, drivers under age 30 have more accidents per mile driven than the general population. Thus, young drivers are charged higher rates, as are families with young drivers in the household.
• Your car: As a rule, the more expensive your car, the more you will pay. Sports cars and high performance cars cost more to repair and are more likely to be stolen, they cost more to insure normally.
• Your location: The higher number of accidents in a more heavily populated area raises both liability and collision premiums. Insurance law usually allow a company to calculate your rate based upon your address, even though you may drive to a more urban or rural area. It is anticipated that most miles driven are within a certain radius of the home address.
• Driving patterns: The more you use your car the higher your rates. A car used to commute 15 or more miles to and from work has an increased risk of being involved in an accident, than one that is driven for pleasure use, not on a daily basis.
• Your driving record and claims history: Most companies apply a surcharge to drivers who have been involved in an accident or convicted of multiple traffic violations. Also, the more claims you have made, the higher your rates are likely to be.

To get specific quotes for certain areas we would recommend getting a quote on those different zip codes to compare the quotes. Since insurance company rating systems can vary, even for the same geographical location, try comparison shopping for your car insurance rates.

Here also are a few tips on ways to save money on auto insurance:

• Choose the right car: Before you buy a car, check with your agent to see how much the rate for the car you have chosen will be, and if the premium and the car payment fit your budget.
• Choose a higher deductible: Your insurance premium can be decreased if you increase your portion of the risk. Raising your collision and comprehensive deductibles from $250 to $500 or higher can save money. You do need to be aware that you will have to pay the higher deductible any time you use these coverages so don't make it so high you cannot afford it when you need it.
• Eliminate duplicate coverages: You may have an overlap in coverage, such as medical coverage and health care, or collision and uninsured motorist property damage. Ask your agent to explain what each coverage offers you if you do not understand.
• Shop around: Most states allow insurance companies to set up their own rating systems (that they file and have okayed by the state's insurance regulator). Because each company's rates are based on its own loss experience, the premium charged by different companies can be different for the same driver.

Factors that Affect Your Car Insurance Premium is an article in our Learning Center that may also better help you to understand how car insurance is calculated. For specific insurance information regarding your specific state's insurance laws try contacting your state's insurance regulatory body.