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. However, there is a great deal of money to be saved with the premium charged, if you know what to look for.

The driver’s age will affect the car insurance premium greatly as drivers who have not reached twenty five years of age are often penalized because of their perceived inexperience. Unfortunately for those younger drivers who are safe, they pay the cost for the vast majority who are considered unsafe on the road as accident and moving violation statistics can prove. As far as the insurance providers are concerned, the age group of people who are costing the most will have to pay the most.

The next large determining factor is they type of vehicle you drive and sports cars which are usually driven fast attract a higher car insurance premium than say a family sedan. If you own an expensive, top-of-the-range car, you can also expect to pay considerably more for your protection as these are costly to repair. Savings on premiums can be made by buying a later model of the car you like or finding one that is built to a higher standard.

Many drivers have what is termed a ‘loading’ on their standard premium as they have a bad driving history and this can affect someone of any age. Insurance companies also like to reward safe drivers with lower car insurance premiums as an incentive for good driving; they will increase the premium for drivers who are not careful or do not care about other peoples safety. This attitude from providers is because they know from experience that people with a poor driving history are more likely to claim on their policy.

Annual savings can be made if this information is acted upon as the rise in car insurance premiums will continue. There are many factors that can influence the rise and fall of an individual’s premiums. 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.