If you’re driving without proper auto insurance coverage, there are many ways to get into trouble. While there are laws in almost every state requiring a minimum amount of liability insurance, it’s also the smart choice. I was recently talking to an insurance agent who sells car insurance in Fargo, ND asking about how much car insurance would cost for my teens. There are many different factors that determine what your insurance premiums will cost.

First and probably most crucial is you’re driving record. If you’ve been involved in your share of accidents, received numerous speeding tickets or had DUI or Leaving The Scene violations your insurance is going to be much more expensive. Many insurers have developed vanishing deductibles or safe driver discounts that kick in the longer you go without an accident claim or ticket.

Next your potential insurer is going to want to know your age. A young driver, whether male or female, will be charged more for insurance coverage because they are a greater risk. The difference in premium between someone age 27 and another age 17 can be as much as 25% with an identical car and driving background. Most companies will start to give you lower rates when you hit age 25 and they may drop even a bit more as you continue to get older.You’ll receive a reduction in your premiums at age 25 and some again at 28. The reason premiums drop as you age is because the older age groups have far fewer accidents than the younger groups.

A third consideration you have to think about is the car you’re driving. If your insurance company is going to have to pay to fix an expensive car or one prone to more accidents or thefts, then the premiums will be higher as well. Insurance companies base premiums on historical losses, so if you have an expensive car to fix or a popular theft target there will be higher insurance premiums. While the number of deaths per mile driven has dropped dramatically over the past 15 years nearly 35%, many of the safety features such as crumple zones have increased the cost of fixing automobiles. As vehicles become more expensive and complex the collision / comprehensive portion of your car insurance premiums will continue to increase.

One thing that I think is important is using the internet to get rate quotes to see what’s available but then talk to a local agent to see if there is anything you can do to improve your car insurance rates. Rod was telling me that several of his clients have saved enough on their car insurance premiums to pay for their home or renters insurance which is equally as important. You have nothing to lose by talking to an agent and you may get a positive surprise.