Insurance companies use the past experience of millions of drivers to make predictions about the frequency and average cost of accidents during the policy period.  For example, they can't say that 25-year-old John Smith will have an accident in the year ahead.  What they can say is something like this: Out of 1,000,000 drivers 25 to 34 years old, 250,000 will have an accident in the next year.  This is a fairly precise prediction, and the more insureds in a pool, the more accurate the predictions will be.

        Of course, insurers don't know each of their insureds personally.  Even if they did, they couldn't accurately predict if and when each individual would have an accident.  But by grouping insureds and using past experience, insurers are able to predict what percentage of each group will have accidents over a period of time.

Here are some of the factors that will influence your auto insurance premiums:
 

• Sex: If you're a young man, you will generally pay more than you would if you were a young woman.  This is because young men, as a group, are involved in more accidents than young women drivers, and they have almost three times as many fatal accidents.

 
• Age: Your age can also place you in a more expensive grouping.  Drivers less than 25 years old tend to have more accidents than older drivers.  As a result, a 17-year-old single male may pay three times as much for insurance as a 30 year-old single male.  Some companies offer discounts to those between 50 and 65 years of age, since this group has lower accident rates, overall.  After age 65, though, rates generally tend to begin rising again, and those over age 70 may have trouble finding an insurer to accept them as a new customer. When they do, the insurance can be more expensive.  For this reason, some experts recommend that those over 60 consider staying with their current insurers.

 
• Marital status: Statistics show that, as a group, young married drivers have fewer accidents than young single drivers.  Therefore, young married drivers usually pay lower premiums. Even if your age, sex and marital status don't put you in a group paying lower premiums, you may have other characteristics that qualify you for reduced insurance premiums.

 
• Driving record: Your driving record will play a crucial role in determining the premium you pay.  Extensive studies show that drivers who have been in an "at-fault" accident in the past three years are significantly more likely to have another accident than drivers who haven't had an at-fault accident.  Similar data applies to moving traffic violations.  Because of this, people with at-fault accidents or traffic convictions on their records pay more for their insurance, usually for three years following an incident.

        How much more they pay depends on the frequency of their accidents or convictions and the type of conviction. An accident in which you were at fault, will weigh more heavily against you than a minor traffic violation. Most insurers will cancel or refuse to insure drivers who have been convicted of drunk driving. In general, however, you can expect a very poor driving record to double the price of insurance.
        Some people with poor driving records have a hard time finding insurance at any price. For them, there are state- regulated insurance plans - sometimes called "assigned risk pools" or "shared markets." Generally, these people cannot select the company that writes their insurance. Instead, the state motor vehicle department normally assigns the "risk" to an insurer.
       These plans guarantee that everyone will be able to buy at least the minimum amounts of insurance required by their state. However, the resulting coverage may sometimes be less than what is needed for full liability protection. Once their driving records improve, people in this category should be able to get standard coverage.
        If you have not owned a vehicle for three years, some companies will rate you as if you've never driven before and may refuse to insure you. Be prepared to pay higher premiums at first and ask companies how long you have to be a policyholder before they will consider you experienced and lower your premiums.
 
• Type of car: Cars, like drivers, are grouped by risk. Statistics show which vehicles tend to be involved in more accidents, to suffer more serious damage or cost more to repair, and to be stolen more frequently.  These risk factors affect insurance rates. Choosing  a car with a bad record in these areas can more than double collision and  comprehensive insurance premiums.

        For example, most companies charge more to insure high-performance cars and sports cars due to the higher risk involved. Full coverage for a new Pontiac Trans Am might cost $999 annually. The same driver would pay only about $642 for the same full coverage on a new Chevrolet Geo Metro.
 
• Other factors: Anything that might influence the frequency and size of claims you make on your insurance policy will affect the price you pay for coverage. For example, the number of miles you drive affects your likelihood of having an accident and, therefore influences your premiums.

        Rates are regulated on a state-by-state basis, so the way an insurance company sets rates in Florida will be different
from the way it sets rates in California. In addition, rates vary considerably from city to city. People who live in a small town or suburb are less likely to have auto accidents than those living in a large city. And, auto repair, medical care and legal services generally cost less in a small town. Other variables are weather conditions, population density, road conditions and traffic laws. Insurance companies take all these things into consideration when setting rates. In many states, your insurance premium will reflect not only your age, sex, and driving record, but also those other licensed drivers in your household. If your spouse has a poor driving record, it is likely to mean a higher insurance rate for the family car, even if your driving record is perfect.
 
• Discounts:
• Good student: For drivers under age 25 who attend a high school, college, or university. If the student maintained

a B average for the preceding semester, a discount may well be offered.
• Driver training and defensive driving courses: For drivers who have taken an approved driver education course.
• Good driver: For drivers with no accidents or convictions on their record for the previous three years (California only).
• Mature driver: For those between 50 and 65 years of age.
• Multi-car: For those insuring more than one car in the same city, a sizable discount may apply.
• Restricted mileage: For drivers with fewer than 7,500 annual miles.
• Carpooler: Those participating in a  carpool, rather than driving their own car to work all week.
• Passive seat belts and air bags: For  cars equipped with factory-installed air bags or automatic seat belts.
• Anti-theft systems: For devices that make it more difficult to steal your car. These devices include ignition and fuel cutoff systems, hood- and wheel-locking devices, and window identification systems. Discounts are higher for automatic anti-theft systems than for manually operated systems