Shopping for affordable car insurance can be a confusing task. For the average driver, how insurers arrive at their risk assessment of your driving abilities can be confusing. Fundamentally, insurers break car insurance premium rates down based upon industry statistics compiled over decades of coverage. While many factors are involved in these complex computations to find the best car insurance premium for you, they basically fall into two basic evaluative groups – you and your car.

When insurance companies look at the driver, they factor in multiple components, including your age, sex, driving record, occupation, marital status, neighborhood, miles driven and credit rating. They are assessing what sort of risk they would be taking on by insuring you as a driver. Car insurance companies have a vast expanse of statistical evidence on typical drivers that helps them assess this risk. This evidence includes facts about how women are safer drivers than men; how drivers under the age of 25 and over 65 are of higher risk; how married drivers are a better insurance risk than single drivers; and how people with lower credit ratings are ultimately more responsible. Location has a lot to do with determining your rate as well. For example if you commute a long distance or live in a neighborhood that is highly congested, you will likely be considered a higher insurance risk. A final factor in assessing rates is whether you have maintained continual car insurance coverage and how much. Any lapses where you have let your auto coverage slip will result in much higher premium quotes. In addition, if you have paid for higher liability limits, resulting in greater coverage, you will typically qualify for lower rates.

When insurance companies look at your car, the components involved are not as numerous as those concerning you as the driver, but are just as important in assessing your realistic risk to the insurer. The first item insurers examine is the make and year of your auto – the newer and more expensive your car is, then logically the more the coverage will cost. In addition to the make and year, your vehicle's options play a role in your rate. Safety factors like anti-lock breaks, air bags and all-wheel drive can be used to lower your rates. Other options car insurance companies find relevant can include anti-theft devices like lo-jack, which usually qualifies a consumer for car insurance discounts.

Consumers can keep car insurance premiums more affordable by being proactive. Taking defensive driving courses, maintaining your vehicle and its coverage and keeping an eye on your credit ratings are all ways to lower your premiums. Not only will you save money, but you'll be a safer driver.