People from all walks of life are trying to cut their expenses. In a tough economy where people have either been laid off or fear losing their job they look for ways to save some dough. Many look to change or shop their auto insurance policy to save some money. Before you can do that you need to understand what factors determine your insurance rates.

Here are a some factors that determine your auto insurance rates:

Who you are – Age has a lot to do with your car insurance rates. People under 25 years have higher insurance rates because they are more prone to accidents. Statistically, this age group gets more tickets and have more accidents so insurance companies are going to charge them more. People in their 50’s and 60’s as a group tend to be the safest drivers on the road.

In the past, gender used to affect insurance rates but not so much anymore. More women are driving now than in the past and are just as big of a risk as men.

Are you single or married? With all else equal a married person ends up paying less in auto insurance than a single person. Statistically, married people have fewer traffic infractions and car accidents than single people so naturally insurance companies will charge them less.

Geographical Location – The city and state you live in is an important factor in determining your auto insurance premiums. Rural areas tend to be less expensive than a dense city location because there are fewer cars and less of a chance of getting into an accident. There is also probably a smaller chance of vandalism or theft in a more rural setting.

Are you a bad driver? It is pretty simple – if you want low auto insurance rates then be a safe driver. If you have accidents and traffic citations on your record then you are naturally going to pay more than someone who has a clean record. If you were running an insurance company wouldn’t you do the same thing? If you want to enjoy lower rates then drive more carefully and maintain a clean record.

The car you drive – What kind of vehicle you drive affects the amount of insurance you pay. From its make, model, year, safety devices and features, to the mileage can either increase or decrease your car insurance premium. If you were an insurance company who would you charge more for insurance? The guy who drives a $75,000 Mercedes or someone who drives a $2,500 El Camino?

Finding Cheaper Auto Insurance:

Before buying or renewing your current auto policy shop around. You can shop on the internet, contact your local insurance agent or call the 800 number of a large carrier. Don’t assume all companies are going to charge you about the same rates. You might find some large discrepancies.

There are many websites available where you can comparison shop by getting multiple quotes from various insurance companies. These are particularly useful.

If you work better off of a personal relationship then contact your local insurance agent. They live in the same town as you and can give advice on the best auto policies. You might find it better to work with someone locally than a person on the other end of an 800 number. Also, if you ever have to file an insurance claim you might be better off dealing with a local insurance agent.

Slade Tanner – Auto Insurance in Tampa, Florida