Everyone wants affordable car insurance

Although some will be looking for really cheap car insurance, only wanting to pay the minimum for the mandatory liability coverage, the majority of drivers will be looking for the level of cover that's right for their needs.

What are the main factors when setting rates?

When the insurance industry developed their business model, what factors did they consider when deciding how much to charge for a policy?

» Who you are — this starts with your age, gender, where you live, and what your credit score is. The accident statistics show age as the main variable. When you are young and inexperienced, you are far more likely to have an accident. Sadly, young men are more reckless than young women. Where you park your vehicle overnight affects the risk of vandalism and theft. If you are in financial trouble, you may skimp on maintenance and repairs making your vehicle less safe.

» Your track record as a driver. The longer you go without picking up a ticket or getting into an accident, the lower your car insurance quotes.

» The make and model of your vehicle. If you decide to drive a fast sports car, the rate will be significantly higher than for a family saloon. If you buy collision and comprehensive cover, the replacement value of the vehicle is important.

» How many miles a year do you drive? The farther you drive, the greater the risk of an accident. Car insurance quotes will be lower if you only drive 12,000 rather than 24,000 miles per year.

» Where do you drive? People who live in a rural state with few vehicles on the road pay less than people who live in densely populated cities where the accident rates are high.