Insurers look at many variables when determining how cheap your auto insurance will be. Ultimately, the price an insurance company offers you will be determined by your risk profile — meaning your likelihood of having to file a claim during a policy period — and that insurer's business strategy.

When you use AutoInsurance.com's online quote form, we'll ask for your ZIP code and other pieces of information that will be necessary for insurers to get a better sense of your risk profile. If your driving history and certain personal characteristics indicate that you're less likely to file a claim, you'll likely be considered to have a low risk profile. In most cases, drivers with low risk profiles will have an easier time finding cheaper insurance coverage. But some coverage providers actually target drivers that are riskier to insure and will offer them low cost coverage when compared with most insurers. Since pricing models are so varied from insurer to insurer, the only way to know you're getting the cheapest coverage available is to shop around.

According to the National Association of Insurance Commissioners¹, drivers who are over 25, female, married, don't have accidents on their records, and don't live with younger drivers tend to have fewer accidents and, consequently, get more affordable rates. But even if drivers don't fit this profile, they can still get cheaper coverage by shopping around and maximizing any opportunities for discounts. Here are some tips for getting discounted rates:

• Coverage: Become knowledgeable about coverage. Certain coverage types may be unnecessary and costing you additional money. One example is having physical damage coverage on a vehicle with a very low value. According to the Insurance Information Institute, if a car is worth less than 10 times the premium of your optional physical damage coverages, it may not be cost effective to keep those protections. Another example is having coverage that overlaps with existing health insurance. Discuss with our agents the benefits of having uninsured motorist and medical coverage when a health policy is already in force.
• Vehicles: It may be a good idea to quote coverage before buying a vehicle. Some vehicles are more costly to insure if they fall into a higher risk category. Whether the price difference is due to expensive replacement costs or negative claims trends, getting quotes for a vehicle before purchasing it can help you avoid surprises. Adding multiple vehicles on the same policy may also make you eligible for multi-car discounts, which can significantly reduce rates. Additionally, your annual mileage may directly impact premiums, so anyone with a short commute to work or school should inquire about a low annual mileage discount.
• Drivers: Insurers give most discounts to drivers automatically, without the need to ask for them. Such discounts include the good-driver discount, which is issued for having a good driving record with a certain minimum driving experience. For young drivers, a good-student discount can help reduce costs, but you’ll have to bring it up with your insurer and prove you’re getting satisfactory grades. Some things that impact price simply cannot be controlled, such as age and sex; however, it's good to know why, for instance, a middle-aged female may be quoted a lower rate than a young male.