If you have a bought a car recently and are looking for cheaper car insurance, it is important that you educate yourself about the various options available to you so that you could make an informed decision.

It is of critical important that you are aware of the factors that are considered by an insurance company before they extend insurance cover to your vehicle and determine the premium you are to pay.

The cheapest car insurance is offered to the people who fall in the lowest risk category. So, while deciding which insurance you must go for, it is important to know in which category you fall. This will enable you to understand why your next door neighbor gets to pay lower premium on the car of the same make from the same insurance company while the company takes hefty premiums from you.

This might leave you puzzled, but actually it is very simple. It is not just the make of the car that is considered but there are several other factors that are carefully analyzed before your premiums are determined.

The kind of car you drive is certainly one of the things considered but is not the only thing. Your car is considered because if it is an expensive kind, getting it repaired would cost a hefty sum, which the insurance company will have to pay. Therefore, you pay higher premiums.

Besides, a great looking, expensive machine lures many thieves, increasing the chances of theft. And if you car is stolen, it is the insurance company that has to pay for it.

Another thing that is considered is your age because it has been found that younger men tend to drive faster and take greater number of driving risks than older men. Besides, younger ones are relatively inexperienced, which increases the chances of accident. The premiums are, thus, higher.

Your driving skills are also considered because good drivers do not cause accidents. So, if you are good driver and your driving record is good, you'll not have to pay hefty premiums. On the other hand, if you have a bad driving record, the insurance company would consider you a high-risk party and would charge higher premiums.

Gender also plays a role because young men are known to cause greater number of accidents than young girls. So, if you are young man, you'll have to pay for being young and for being a man at the same time.

While going for an insurance plan, consider all these factors yourself so that you could know what kind of insurance would be best in your category.

If you fall in the low-risk category you'll get cheaper car insurance but if you are in a high-risk bracket, you don't have the same options.