If you are looking for the cheapest car insurance company, you should know how your rates are determined. In general, the insurance company takes all of the information they have about you and decide on your level of risk. This risk level indicates the likelihood of you filing a claim with the company due to damages that are in need of repair.

How can the insurer decide how often you will file a claim?

* One, they look at your past driving record. Are you involved in accidents regularly, say, once a year or more often?

* Do you have multiple accidents and tickets on your record? When it comes to accidents and tickets, insurers prefer to see few to none on someone’s driving record. It helps them feel that you are a safe driver who exercises caution when driving and uses good judgment, which will lead to lower rates.

* If your record isn’t spotless, work on cleaning it up. Pay attention to your surroundings while you drive and eliminate all distractions. Turn down the radio (or turn it off), put your cell phone in the back where you can’t reach it if it rings, and keep both hands on the wheel at all times. Know the speed limit of the streets you drive and don’t be aggressive while on the road.

There are many things you can do to help avoid getting in accidents and keeping your record free of points to help keep your rates low.

The insurer will look at the type of car you are driving.

* Is it an expensive car? If it is, you’ll be paying more for insurance because it would cost the insurance company more to repair or replace it if needed.

* Also, any car that is deemed a “sports car” or otherwise driven at fast speeds will also be charged more.

* Contrary to popular belief, the color of your car does not have an affect on your premium charges.

Information about you will dictate how much you pay.

* Your age,

* Gender,

*Place of residence

* Marital status affect your rates, no matter which provider you choose.

This information places you in statistical categories that also show the likelihood of your involvement in a crash, much like your driving record. While there’s not much a person can do about their age or gender to change their rates, drivers can focus and concentrate on the things they can improve to help save them money, such as the type of car or their current driving habits.