For most people car insurance rates are a complete mystery. They have no idea why there rate is high and they have no real idea of how they can have an impact on that rate to make it lower. These people pay for policies and oftentimes pay a lot more than is necessary if they simply chose to make some better life decisions.

The first thing that affects a car insurance rate is a persons age and how many years they have had a license to drive. The younger the person and the fewer the years they have been able to drive the higher the policy rates. As a result, young people, especially those who have just obtained a drivers license are oftentimes forced to pay much higher rates than those that are even just a few years older. The reason for this is that young and new drivers tend to get in many more accidents and traffic incidents than do more experienced drivers.

The second primary determinant of car insurance rates is the area where you live and drive. If you live in a large city then be prepared to pay rates that are much higher than those that live in rural or sparsely populated suburban areas. The reason for this is simple, the densely populated cities have more cars stolen, vandalized, and in accidents than their counterparts in rural areas. As a result of more incidents there are more insurance claims and therefore the policy rates are higher.

A third factor is the number of miles you drive. This is a simple factor that everyone should understand. The more miles you drive the more you time you are exposed to getting into a vehicle accident. Therefore the rates for people that drive more are higher than the rates for those that drive less.

These three factors are the primary determinants used when a car insurance company calculates the rates that you will be charged. Change any one of them and you will see a significant change in the rate of your policy.