Auto insurance is all based on statistics and the chances ofaccidents happening. Therefore, reduce the chances of accidentswill ultimately reduce the amount of the insurance policy.That's why auto insurance is more expensive for teenagers thanadults. Here are 5 factors that the insurance companies look atto determine how much your insurance will be.

1. Deductible. Raising the deductible on their auto insurance is a good way to cut the cost of the policy.Sometimes you can reduce your annual premium by 10 percent ormore if you increase your deductible from, say, $250 to $500.However, If you do this make sure you have the financialresources to handle the larger deductible when the time comes.

2. Location. Living in a rural community with littlecrime and traffic congestion, your premium will generally belower than living in an urban area where your car is more likelyto be stolen, vandalized, or involved in an accident. Granted,you shouldn't move just to cut your auto insurance costs.However, this may be one of many factors in your decision ifyou're thinking about relocating from the country to the city.What you should do ask one of your friend who lives in the ruralif you can use his address for the auto insurance and is tellthe insurance companies the rural location where your friendlives.

3. Garage parking. Cars parked in garages are less likelyto be stolen, vandalized, or struck by other vehicles. Using agarage to store your car may entitle you to a slight premiumreduction.

4. Mileage. If you drive less than a certain number ofmiles in a year (e.g., 7,500), you may qualify for a low-mileagediscount. If your insurer offers this discount, try to limityour driving as much as possible. If you commute to work, usepublic transportation instead of driving. When you go away onvacation, fly or take the train.

5. Safety/Anti-theft Devices. Majority of the insurance companies offer discount if your car is equippedwith one or more of the following safety devices: anti-lockbrakes, automatic seat belts, and airbags. Similarly, anti-theftdevices such as car alarms and tracking systems (e.g., Lojack)may also get you a discount because they reduce the chances ofyour car being stolen or vandalized.

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