Some drivers regard insurance companies with great suspicion. They are convinced that, in the event of an accident, the insurance company is going to all it can to avoid paying the costs. While there are certainly some companies that may well be regarded as unreliable most insurance companies do try and provide a good service.

However they do have to contend with many dishonest individuals who make a living out of defrauding the insurance companies. The ultimate cost of these violations in the end is passed on to the consumer. This cost is baked into the monthly or half yearly payment made to keep an insurance active and is called a premium. The premium varies from insurance to insurance depending on how deep the coverage and what it covers etc.

But let us first look at the average driver like you or me. When we apply for a car insurance than what the insurance company does is to first look at our age because generally an older driver is more careful and the premium cost drops. Some companies may well have different levels of insurance each adjusted for a certain age bracket. Besides age other factors which come into play are gender, geographical location and what sort of driving record you have. Women drivers tend to have less accidents because they, unlike male drivers, do not take chances and are not as aggressive. As for location if you live in a rural area than you do not have the traffic congestion of a big city and there are fewer accidents. These are some of the reasons that premium costs are lower for those who fit such criteria. Your driving record is mostly a matter of public record and it is easy for an insurance company to see if you have a clean record or have been involved in accidents. This also affects your premium.

In today’s information society it is easy for an insurance company to access public records, as maintained by the courts and police system, and determine if you were the cause of an accident or if you are a victim. If you have been deemed negligent than your premium will go up. If you are the victim than hopefully you see no increase in your premium or at the worst a small rise. Some insurance companies apply a bonus system for the number of years you drive without any incident. If you have achieved a full bonus than you get a lower premium.

As a car owner it is possible to get a lower premium by being a careful driver and if involved in an accident to make sure that the police get all the facts if you consider yourself the victim. Never get behind the wheel if you have been drinking. If you are pulled over for a breath analyzer test than your premium will go up if the test exceeds the lawful limit not to mention the problems you may encounter with the police. You can also lower your premium if your insurance company encourages you to do more to safeguard your car with anti theft devices.