Finding the best car insurance can be hard. Every company offers different rates and coverages based on what they calculate to be the risk. Many different factors are involved in calculating the risk which will eventually decide the cost of insurance. However, there are a number of easy to identify factors which contribute directly to the end price of insurance.

First off, the insurance company will examine your driving record for any moving violations or accidents that you have had in the past. If you have a clean driving record for the amount of time they look at, your policy will be cheaper than someone who has crashed.Insurance companies also factor in age and driving experience. If you are a new driver, you probably are not as good as other drivers, so the insurance company will charge you more and since your lack of experience does not allow them to base a history fo your driving record it will cost you more as well. A person who has been driving longer and still has no claims on their record will get the best rates as they are the safest people to insure.

Even though it might not seem fair, insurance companies will also look at your credit rating. If you have a good credit score, own a home, and have other assets to protect you, the company will assume you will be more likely to make your payments.

Next, insurance companies will verify that you have had previous insurance coverage. Usually they will will want to know if you had coverage for a specified period of time. Certain insurance firms will not accept you as a client if you have never had coverage or if you failed to maintain a previous policy. If you currently have insurance, it is importance to keep up your payments and renew your policy in case you need to seek other insurance in the future.

The type of car you wish to insurance makes up a large part of calculating your insurance. In the end it will be the value of your car which the insurance company must insure because the cost for the company to insure the vehicle will be the cost to repair or replace it. It costs more money to replace a luxury car, making it a great cost and risk to the company to insure. The type vehicle also reflects the person. The kind of person who buys a sports car is often a high risk driver because they are more likely to be person to drive fast. On the other hand, the kind who buys a small affordable conservative car is more likely a conservative driver. This makes them less of a risk than the sports car driver.

Finally, there are certain car assessories that can increase the chances of a car being stolen, and thus, requiring higher rates. Alloy wheels, an expensive car stereo, or other customized features will increase the risk of theft. If you protect your car with an anti-theft device, such as an alarm or a GPS tracker, insurance companies may lower your rates. If you want information regarding the risk category into which your vehicle may fall, contact your car dealership or find a reliable website or search engine online. These sources will help you determine whether you own a high risk vehicle. If you discover your vehicle falls into a high risk category, make an appointment with your insurance agent to discuss methods of lowering your risk and your premiums.

Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading Car Insurance portal.