The type and cost of the vehicle can be significant factors in determining car insurance premiums. A more expensive car is more costly to repair, and therefore insure, and will generate a larger claim if damaged or stolen. Insurers may also consider safety tests and records for the vehicle.

Drivers typically pay less for car insurance if they have a clean driving record. Inversely, a record of accidents and traffic violations will increase premiums. Every state and insurer has its own regulations on how far back to look (“look-back period”) to find incidents that might affect your premiums. This can incentivize drivers to work to improve their driving habits. Even with a poor driving record, there are car insurance companies that provide affordable coverage.

Auto insurance premiums will also vary depending upon the type and limits of coverage chosen. For example, if you have a much older vehicle you may decide you don’t need collision coverage to help you cover repair costs. Most states have minimum auto insurance requirements. Insurance experts generally recommend much higher coverage limits to help protect against costly accidents.

Claim history will follow a driver and if the driver has a history of claims, particularly at-fault claims, carriers will almost certainly increase car insurance rates. This is to offset the greater risk of insuring someone who may be more likely to have future claims.

A credit-based insurance score is similar to a regular credit score used by lenders, though it considers fewer of the factors in the calculation. As with a poor claims history, car insurers view poor credit scores as indicators of a greater risk that premiums won’t be paid on time. Additionally, car insurance company may believe that credit scores reflect a person’s overall level of responsibility. However, some states do not permit the use of a credit score in determining auto insurance rates.

The location where an insured vehicle will be used most often, and parked, will impact car insurance premiums. Experience has shown drivers who reside in high crime areas are more likely to file a claim, such as car theft or vandalism. For these reasons, car insurance rates can vary significantly from one ZIP code to another.

Not surprisingly, a number of states have now expanded non-discrimination laws to add gender to race and religion as a prohibited factor in setting car insurance premiums. Recently, California made the practice illegal. This is actually good news for young men, because they typically pay higher premiums than women.

All car insurance companies offer discounts that can make coverage more affordable. These include:

• Safe driver discounts,
• Safe vehicle discounts rewarding features like anti lock brakes,
• Multi car discounts, 
• Discounts for taking defensive driving classes,
• Low mileage discounts, and
• Discounts for lump sum payments and going paperless.

There are also a number of car insurance discounts that are less well known or advertised such as away from home student discounts, discounts for energy efficient cars and long time customer discounts.

The only way to be confident that you are getting the best car insurance at the best price is to obtain a number of quotes from the companies in your state and area. There are three overlapping factors that determine your premiums: various risk factors, the different ways insurance companies weigh those risks, and the discounts offered by insurers. By carefully comparing quotes, you may find the specific policy that fits best for you.

Most car insurance companies will offer a discount if you purchase more than one type of insurance policy from the same insurer. Combining home and auto insurance is one common bundle that can qualify you for a discount.

There are a number of companies which offer excellent bundling options. For example, State Farm bundling options for its home and auto insurance products. Liberty Mutual also offers bundling options with a user-friendly website to assist in the quoting process.

As always, it is important to do your homework and compare car insurance quotes from multiple companies to find the best bundling options for you.

Every insurance company has its strengths and weaknesses, and each company is best suited to a specific type of driver. Based on our research, Amica and State Farm have the highest Reviews.com Scores.

Every insurance company has its downsides. Some only offer basic coverages, some offer very few car insurance discounts, and many companies struggle with customer service. There isn’t one company that stands out as the worst.