There are several factors that affect the auto insurance premium which are discussed in detail below.

Gender

The fist factor is the gender of the policy holder. Don't worry I am totally against discrimination on the basis of race, sex or age. Here things are different. Gender plays a role in deciding the premium. If the driver is a female then the premium usually offered by several insurance companies is low than the one offered to a male driver. Generally, female drivers are considered to be safer drivers because of less temptation to speed driving and that makes them a low risk. However, most of the rates offered to the adults are the same for both sexes.

Marital Status

Marital status can play role in reducing the premium rate. The married person will most of the times pay a less amount as compared to a person that have a similar driving record.

Age

Car insurance premiums for teenage drivers are quite high because they have very little or no driving record. Yes there is a way of reducing the premium for them too if they go and take driver training courses from recognized schools. If a teenager is staying away from home or have achieved good grades in his education then many insurers may provide discounts on the premium. The premium rates get further lowered at the age of 25 and older citizens eligible for driving also get retirement discount.

Driving Violation

When you take your car on the road you break rules sometimes knowingly and sometimes due to mistakes. These violations can be rough driving, speed tickets and accidents. All of this information is saved in your driving record and the insurance company after consulting it will give you a higher premium because of higher accident risk. The high premium doesn't stay at the same limit all the time. Once you drive safely and driving record gets better your premium will also reduce.

Type of Vehicle

The type of car also increases or decreases the insurance premium. If the vehicle is a cheap car then the insurance premium is quite small than the one you would have to pay for an expensive car.

Credit Rating

Several companies these days are taking the credit score into account in determining the premium limit. They say that if a person cannot manage his finances i.e. have bad score then he cannot drive safe. Although this mostly hurts the working class who miss out payments due to any problem and get bad scores but still this is a way of calculating risk by the insurance companies. Having a better score will get you a better premium.

Occupation

The occupation of a person also plays a role in deciding the premium. A person who sits in his office behind a desk all day doesn't drive much whereas a person that has to travel a lot is at higher risk of accident and will get a higher premium rate. If you are educated, live at a small distance from work, have taken driving training, and your previous insurance was not high then yu will get a good insurance deal but you still need to search and find the a policy that best serves your purpose without becoming a burden on your pocket.