Your insurance premium will normally go up when you choose to have a lower deductible amount. In contrast if you raise your deductible amount your rates should go down.

So if you have Physical Damage coverages on your vehicle you can request higher deductibles for your Comprehensive and Collision coverage. As you know the deductible is the amount of money you have to pay before your insurance company begins paying the rest.

If you choose to pay for smaller items yourself, such as little dings and bumps, and claim expensive damage so your insurance company pays, minus your deductible it should save your money on your car insurance premium. This is because you would be paying for smaller damages that cost less to repair than your higher deductible amount.

Instead your financial situation may call for you to lower your deductible so you know that you can afford the deductible amount if your car is damaged and you need to use your Physical Damage coverages. You do not want your deductible so high that you cannot afford to pay out that amount to get your car fixed because you cannot come up with this money. Your rates may be higher but it may be worth it for your personal situation.

If lowering your deductible raises your rates than make sure you speak with your insurance agent to make sure you are getting all the discounts available to you. If you are getting new discounts for theft deterrent devices, safety features, etc this may help balance out the increase to the policy you are incurring from lowering your deductible amount.

What insurance companies can use to rate insureds is governed by state laws which state insurance regulatory agencies help oversee. Major factors that are used by most insurance companies in most states include your age, the kind of vehicle you drive, your claims history, in some states your credit history and your driving record.

See the lists below for a more comprehensive list of factors that various insurance companies may take into account when determining rates.

General factors:

• Your age
• Marital Status
• Gender

Factors you CAN change that impact your auto insurance rates:

• Accident claims
• Geography
• Driving violations
• Your vehicle
• Credit rating
• Occupation

Other potential factors that go into determining premiums:

• Years of driving experience
• Miles driven per year
• Distance to work
• Business use of the vehicle
• Whether or not you currently have auto insurance
• Theft protection devices (often results in discounts and doesn't affect rating, but it affects the price)
• Multiple cars and drivers (another opportunity for discounts and doesn't affect rating, but it affects the price)

Insurance company guidelines differ but in general the information you need to provide when applying for car insurance and to get quotes typically includes:

• Driver's License Numbers for all drivers
• Social Security Numbers for all drivers (if applicable)
• Credit card/checking account information

You will also need to have answers to questions in these categories:

• General questions
• Drivers/Household Residents
• Violations or Incidents
• Coverage Selection
• Account Setup

Your rate quote is then determined using this basic information. If you are ready to get an auto insurance quote, click here and get started. To determine the type of insurance coverages you need you should use our Insurance Coverage Calculator.