Plan ahead and compare a few auto insurance quotes when you are purchasing a new car. Get information on how some of the factors affect the premium you pay. With the underwriting guidelines in the industry, every insurance company may still take a slightly different approach when generating a quotation.

Basically, your personal information and the said vehicle is the most important factor. The insurers will have to assess the risk by weighing how likely your car will be stolen, damaged and how it will cause damage. The safety features of your car and also the estimated repairs and replacement costs will also be taken into account.

Your age will also affect your premium. It is viewed that younger or teenage drivers are of higher risk if compared to drivers with more experience on the road. If you are a parent shopping for your teenage driver, help them maintain a clean record by explaining how speeding and carelessness may affect their premiums in future. Very senior drivers of about 60 to 70 years of age are also considered of high risk. Some companies may also offer a discount for drivers of a certain age and with a clean traffic record.

Depending on the type of coverage you are interested in, insurance companies will look into prior claims, mileage and traffic records. You are of lower risk if you have a clean record when compared to another driver with 2 or more accidents. Your occupation may also affect you because it gives a picture on how far you need to travel for work.

Insurance companies often launch new products and promotional payment schemes. So if you have an existing policy, compare the current rates for the coverage you already have. Use your existing policy and compare rates across a few insurance companies. Quotations are easy and quick to obtain and is free. Take special note of your existing policy’s expiry date. It is important to not let your policy lapse. If you are unfortunately involved in an accident before you renew your insurance, you will end up spending thousands of dollars on damages and medical bills. So keep track of your policy’s expiration date.