When a car insurance agent provides a quote for coverage, it might be different from the actual cost once you sign up for a policy. Auto insurance quotes are typically based on information you provide to the agent, such as accidents, violations, credit scores and previous claims. Agents plug all this information into a database to create quotes for car insurance policies, but agents do not actually verify the information. So any information that is left out, whether intentionally or not, may affect the accuracy of the price quote provided.

The process car insurance companies undertake to determine the real cost of an insurance policy is much more detailed than the system agents use to provide price quotes. Underwriters make the final decision about the car insurance rate after evaluating DMV records, past claims, credit scores, and all other available information. It is up to the consumer at this point to decide whether to accept this policy or move on to another car insurance company. This is why it is advisable to compare several different companies before committing to a policy.

The factors that may affect your car insurance rates include the following:

• Age – Older drivers tend to have fewer accidents, which is why drivers under the age of 25 tend to pay more.
• Average Number of Miles Driven Each Year – More miles equals more chances to get in accidents, so those who drive more than 10,000 miles per year tend to pay more.
• Credit History - Car insurance companies often use credit scores to predict the likelihood of a person filing a claim.
• Driving Record – People with fewer accidents, chargeable claims, tickets and other driving offenses will pay less for auto insurance.
• Make, Model, and Year of Vehicle – Some vehicles are more likely to be stolen, be more expensive to repair/replace or be more unsafe. These vehicles may cost more to cover.
• Type of Auto Insurance Coverage Requested – The more coverage you request, the more you will pay for your policy.
• Where You Live – Local trends such as number of accidents, lawsuits, auto thefts, vehicle repair costs and healthcare costs may affect the cost of car insurance policies in different areas.