• Auto insurance helps cover damages in the event of an automobile accident.Crash on the street. German auto model 2007. image by Dariusz Kopestynski from Fotolia.com
  
  With driving a vehicle comes the risk of being in an accident. Whether through fault of your own or that of someone else, an accident can lead to unexpected repair costs, medical costs and in some cases legal fees. Auto insurance can help reimburse some of these costs. Although most states require minimum auto insurance, policies can often be costly. There are many different factors that may affect the cost of the insurance premiums a driver pays.
  
  

Age & Gender

• An important factor in determining car insurance premiums is the age and gender of the driver. Although females under age 25 generally pay higher premiums than those who are older, statistics show that male drivers in this same age range are at a much higher risk for auto accidents. Therefore, they can expect to pay even higher rates than female drivers.
  
  

Driving Record

• Most auto insurance companies will look at your driving record in determining policy rates. Drivers with tickets or accidents on their record are likely to pay an average of 25-30 percent higher premiums.
  
  

Geographic Location

• Auto insurance rates are commonly affected by location. Drivers in larger cities are considered a higher risk for accidents than drivers who live in rural areas where traffic is less of a problem. Additionally, auto repair costs in larger cities may be higher, causing insurance rates to increase.
  
  

Age & Type of Vehicle

• Drivers of new, more expensive and sportier vehicle types can expect to pay higher insurance premiums than drivers of older model cars. Red is often considered a "sporty" color and may also increase the rates paid for insurance.
  
  

Credit History

• Some insurance companies take into consideration the credit history of the driver when determining insurance rates. Those with a good credit history are seen as more responsible, more likely to stay current on payments and less of a risk to the insurance company than those with lower credit scores.
  
  

Type of Coverage & Deductible

• The type of insurance and the amount of the deductible can make a difference in the amount of premium costs a driver will pay. Comprehensive and collision policies are often more costly because they pay for not only damages to the other car in the event of an accident but also for the insured driver's vehicle. Liability, the minimum requirement in most states, is generally the cheapest option.
  
  

Discounts

• Many insurance companies offer special discounts to customers who have taken driver's education or defensive driving classes, bought multiple types of insurance coverage through their company or hold memberships in participating affiliate companies. There are also discounts for students who get good grades in school. Discount offers vary by individual company.