Three Main Elements

There are a number of individual factors that determine how much you pay in insurance premiums, but they can all be classified into one of the three main elements that form the policy, and therefore the rate: overall coverage, the size of the deductible, and miscellaneous.

• Coverage is more than just how much liability insurance you need, but also has to do with the kind of car being insured, how many drivers require insuring and whether or not car is paid for, leased, or financed by a loan. Financing (lease or loan) is a major factor in determining coverage, because your lender or leasing agent will likely require full coverage, whereas with a paid-for car, sometimes collision coverage is enough. (Don't forget that you may also have to purchase gap insurance if you have a leased car.) As well, if you own a house, or a business that isn't incorporated, you should generally boost your coverage to protect those assets in the event of an accident-related law suit.
• The deductible is the part of any claim that you must pay out of pocket, just like the co-payment in health insurance. Generally, your deductible will be between $500 and $1,000, but a higher deductible will reduce your monthly premiums (payments), while a lower one will increase them.
• Miscellaneous factors are basically everything else that can influence your insurance rate, like various credits and deductions, but also include things like your credit rating, driving record, age, gender, and marital status. Single men under twenty-five are still the most expensive people to insure, as a rule, because they are statistically most likely to engage in reckless driving. Mature drivers (age 55 and over) can sometimes qualify for age-related discounts, however, and people with poor credit are likely to pay higher rates, while those who have been involved in accidents that resulted in fatalities may find themselves ineligible for standard insurance, and have to turn to insurance pools.
  
  Factors that can lower your premiums include loyalty to a single company, having your home and auto insurance with the same company, or taking defensive driving classes. Some insurance companies even give discounts to people in certain professions, like teachers and engineers, so even after you get a quote that you're willing to accept, it's a good idea to call the company and ask about these options.

Comparison Shopping

With a better understanding of what goes into auto insurance quotes, comparison shopping should be much simpler. If you like the first quote you get, good for you! If you'd prefer to compare several remember to look at the following items for an honest comparison:

1. Amount of coverage - what is covered (collision, liability, being hit by an uninsured motorist?), and what is the dollar amount of the coverage.
2. Total premium - what is the total that you are expect to pay? Also, what's the payment schedule? Some companies require six months at a time, while others allow monthly payments.
3. Coverage period - when exactly does the coverage begin and end? If you're transferring from another company, you'll want to know when to cancel the old policy.
4. Total deductible - how much will you be expected to pay out of pocket if you file a claim?

Now that you know what to look for in an auto insurance quote, you know that getting a great rate is easy. Keeping a great rate, however, is up to you, and the best way to do that is to keep your driving record clean.