Well you have to have car insurance by law but the increases in premiums over the last few years are in themselves criminal and are beginning to hurt people’s finances. With the rising costs of gas in addition to premiums, many people are finding it difficult and deciding not to insure their cars at all. There are ways you can save money on your premium if you understand how the amount you pay is calculated.

Obviously the age of the driver has a great deal to do with this as car insurance companies will penalize drivers under twenty five because they do not believe they have been driving long enough to accrue much experience. It is true in the United States as it is in many other civilized countries that this particular age group is responsible for more accidents and traffic violations than any other. Therefore, people under the age of 25 are required to pay more for the pleasure of driving because they cost the insurance companies the most in auto claims.

If you enjoy driving a fast sports car then you can also expect to pay more for you car insurance than someone who only drives an old station wagon. A general rule of thumb is the more expensive a car is, the higher the premium cost will be because of the amount the company will have to pay to get the car replaced if it is ever totaled. By simply choosing a later model or a sturdier type of car, you could reduce your financial outlay by a significant amount.

Irrespective of how old you are, your previous driving record will follow you around and if you are considered a poor or risky driver, you premium will increase accordingly. Accidents, tickets, moving violations are all things that can increase how much you car insurance will ultimately cost. Good drivers are also less likely to make a claim unlike drivers with convictions or a history of accidents that are more likely (and inclined) too.

With the cost of everything rising steadily, it makes sense to do whatever you can to save money on necessary expenditures, such as car insurance. Even more factors than this will affect an individual’s premium but those listed here are the most important. If you are serious about reducing the amount you pay each year for your auto premium you will pay attention to the information laid out here.