Insurance is determined by a number of factors, some that can be changed and some that cannot. The factors that can be changed are the individual factors, while the ones that cannot be changed are usually the ones that are determined by the kind of car and the location of the driver. That is why the same car’s insurance rate can be much higher for two people, even in the same family.

The Individual Insurance Factors: Some You Can Change and Some You Cannot

There are a number of individual factors that will determine how much you pay for insurance. Some of these can be changed either positively or negatively, while others cannot be changed at all.Your age – This changes eventually of course.

• Your occupation – If you drive your car as part of your work, your insurance will be higher.
• Your commute – Again, the more you drive, the higher your insurance rates will be.
• Your credit history – The better your credit history, the better the insurance rate.
• Your driving history – Having a single ticket on your record can cause your insurance rates to increase. The more tickets that you have, the higher the insurance might go. In some instances, insurance might be denied or a special type of insurance required because of some convictions. Frequent accidents and claims can also cause insurance rates to become very high.

The Insurance Factors that You Don’t Influence and Can’t Change

There are also some insurance factors that, while important in determining insurance costs, have little to do with the individual person. These include:

• Your location – There are certain factors that may impact a general area including the crime rate, the weather patterns and other risks that are common there.
• The make and model of the car – There are some car models that have higher insurance rates because they might be more commonly stolen or may be expensive to repair. Of the top ten most frequently stolen vehicles, two are Hondas and three are Toyotas.

How the Car Model Can Influence the Cost of Insurance

There are a number of ways that the make and model of your car can change your insurance rates. These include:

• The type of safety equipment that the car has
• Security systems that are added to the car
• The age and condition of the car
• The general resale value of the car

What Safety Equipment Should You Consider When Choosing a Car?

All three carmakers, Honda, Hyundai and Toyota, offer a number of safety features that can reduce the risk of injuries in a crash and may also lower the insurance rates for these cars. When shopping for a new or used car, it is important to consider some of these features, some of which are standard equipment:

• Anti-lock braking systems
• Front air bags (Side air bags are now offered in several car models as standard equipment.)
• Security systems are another option that are sometimes included in standard packages.
• Passive restraint systems – These can lower insurance costs by as much as 30%.

Lowering Insurance Costs with Discounts

In addition to the factors that change the cost of insurance, there are also a number of discounts that can drive individual insurance down even further. These discounts can vary by insurance provider and individuals but may include:

• Multi-policy discounts
• Good driver discount
• Good student discounts if there are high school or college aged drivers in the house
• Discounts for dealing with your insurance online rather than through the mail
• Discounts for paying your insurance in one lump sum
• Discounts for using automatic payments
• Loyalty discounts offered to keep customers from going to others at the end of their insurance term

Obviously the more discounts that you qualify for, the lower your insurance rates will be.

When Should You Discuss Insurance Rates?

There is nothing worse than buying a car and then finding out that you cannot afford the insurance on it. If you are shopping for a new car, it is important to look at the insurance rates for the type of car that you are considering. You should look at the cost to insure both the new and used version of the cars that you want.