Wondering how you could save on car insurance? Here are six big factors that could affect your premium in a big way.

By Terence Loose    

Want to save big on your car insurance? It helps to know how rates are factored.

Believe it or not, a low number of accidents and tickets doesn't necessarily lead to a lower rate. The fact is that your driving record is only one of the things that insurers consider when calculating your premium.

"The amount you pay is not a cut and dry number," says Loretta Worters, vice president at the Insurance Information Institute (III).

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In fact, your auto insurance rate can vary greatly, depending on everything from car type to whether you're married or divorced, says Worters.

To help you better understand what goes into determining your auto insurance rate, here's a rundown of some common factors used by insurance companies.

Factor #1 - Your Marital Status

For most people, getting married is a good thing. And auto insurers concur.

"Insurance companies see [married people] as a better risk. You're more responsible and more careful as a married person, so you can often enjoy a discount when you get married," says Worters.

Lower rates are not guaranteed, however. Choose a mate with a bad driving record, for example, and your rate could greatly increase.

Rule of Thumb:
Married = Lower Premiums
Single = Higher Premiums

Factor #2 - Your Credit Score

Research shows that people who have good credit also tend to file fewer auto insurance claims, says Worters. This usually results in insurers giving them a better rate.

"Having a poor credit-based insurance score can result in higher premiums or, in some cases, the inability to secure insurance through some carriers," says the National Association of Insurance Carriers (NAIC).

Note that this is not the case everywhere. In fact, some states have outlawed the practice of using your credit score to help determine your auto insurance premium.

Rule of Thumb:
Good Credit = Lower Premiums
Bad Credit = Higher Premiums

Factor # 3 - Your Mileage

We all know that walking can be good for lowering cholesterol, but did you know it can also help lower your car insurance rate? Basically, if you're on the road less often, you're likely to be involved in fewer accidents. That results in fewer claims that insurance companies have to pay.

Not a walker? Join a carpool. "Depending on the insurance company, you and your fellow carpool drivers might qualify for discounts of 10 to 20 percent," says Worters.

And you might be in good company. According to a 2011 NAIC survey, almost 40 percent of consumers drove less in the past year - choosing instead to carpool, walk, or take public transportation more often.

But the caveat is that car insurance rates are usually only lowered when you drive 10,000 miles per year or less, according to III.

Rule of Thumb:
Less Driving = Lower Premiums
More Driving = Higher Premiums

Factor #4 - Your Zip Code

If you hate the city, you're not alone. Auto insurers aren't too hot on urban areas, either. At least that's the inference that can be drawn from the way insurance companies calculate rates.

Living in the city results in higher rates, according to Worters. That's primarily because cities have more traffic congestion - resulting in more accidents - and an increased incidence of theft, vandalism, and fraud. All these elements tend to spell more claims for insurers to pay.

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There are other factors, too. For instance, according to Worters and III statistics, Miami has high rates because it is a port city "where auto thefts can easily be sent to other countries."

"New Jersey is among the most expensive because it has more lawsuits than other states, resulting in more accident-related lawsuits," says Worters. "And New York and Florida also have a lot of no-fault auto insurance, which can also drive insurance rates up."

Rule of Thumb:
More Rural = Lower Premiums
More Urban = Higher Premiums

Factor #5 - Your Gender and Age

Male or female, old or young - insurers care a lot about your gender, and your age. That's because statistics show, according to NAIC, that men have more accidents than women. And teens are considered a higher risk than any other age group.

This is why parents with a driver under 25 on their policy have premiums up to 50 percent higher than they would without a younger driver, according to Worters. Of course, once those young ones leave the nest, the parents' rates usually come down.

And reaching your golden years can generally save you money, too. "If you are 50 or 55 years old or more, some companies will knock 10 to 20 percent off your premium, depending on how many miles a year you drive," says Worters.

Rule of Thumb:
Older, Female = Lower Premiums
Younger, Male = Higher Premiums

Factor # 6 - Your Car

Did you know that the type of car you drive could also affect what you pay for car insurance? And it's not necessarily the newest or most expensive models that might raise your rate.

Insurers watch what car thieves target, and there isn't a Mercedes or BMW in the top 10 most stolen vehicles. According to the National Insurance Crime Bureau's "Hot Wheels" report, the top three most stolen cars in the U.S. for 2010 were the Honda Accord, Honda Civic, and Toyota Camry. Not exactly rock-star sleds.

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There are other considerations, as well. The safety rating of your car matters. Got any flashy equipment, like a spoiler or souped-up engine? That matters, too. And if it's a favorite among thieves for its resale value of parts, it could cost you in the rate department.

Finally, convertibles are more costly to insure because of the ease with which thieves can rip open their roofs, according to Worters.

Rule of Thumb:
Less Attractive to Thieves, Higher Safety Rating = Lower Premiums
More Attractive to Thieves, Lower Safety Rating = Higher Premiums

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