Car insurance providers allow you to choose your deductible and decide whether to add additional coverage that isn’t necessarily required by the laws in your state. The specifics of your coverage and deductibles play a significant role in your monthly payment.

Additional coverage gives you added financial protection, depending on the claim, but will also add to your monthly costs. Remember that while adjusting your deductible will affect your premiums, the differences in premiums are usually minimal.

Some insurers increase premiums for cars more susceptible to damage, occupant injury, or theft and lower rates for those that fare better than the norm.

Some SUVs, for example, rate highly regarding driver and passenger protection, which means insurance discounts. At the same time, some small cars will cost more because of their lower-than-average safety ratings and desirability to car thieves; they are more expensive to insure.

People who use their car for business and long-distance commuting typically pay more than those who drive less. The more miles you drive in a year, the higher the chances of an accident – regardless of how safe a driver you are. You may lower your premiums if you reduce your annual driving mileage.

Generally, due to higher rates of vandalism, theft, and accidents, urban drivers pay more for car insurance than those in small towns or rural areas.

Drivers who cause accidents must pay more than accident-free ones for several years.

Certain credit information helps predict future insurance claims. Where applicable, many insurance companies use credit history to help determine the cost of car insurance. Maintaining good credit can positively impact the cost of your car insurance.

Accident rates are higher for all drivers under 25, especially young and single males. Insurance prices in most states reflect these differences.

You might also be in line for a discount if you’re a student. Most car insurers provide discounts to student drivers who maintain good grades. In some states, younger drivers can also take driver safety courses that will lower premiums.