Auto insurance companies do not just look at your vehicle when determining your premium; they also look closely at you as an individual and a driver.

#1 Your Age

Your age has a big impact on your insurance rates. Teenagers and young adults face higher insurance rates, with the magic age to start getting an age-related discount at being 25. That discount for age will not last your entire life. As you start to advance in your years, you may start to see an increase in your premium again, as older drivers are considered a little bit more of a risk to insure than middle-aged drivers.

#2 Your Driver History

Your driving history matters. Insurance companies look at how many driving tickets you have had and what they are for. A speeding ticket will increase your premium a little bit, but a reckless driving ticket will really skyrocket your premium. These impacts are felt for a while; after you get a ticket, you can expect your premium to be a little higher for numerous years.

#3 Your Claims Record

Insurance companies also look at how many claims you have filed in recent years, not just with their insurance company, but with any insurance provider you had. There is a national database where insurance companies can look up your claim history. The more claims you have, the bigger the risk you are to insure, and the higher your insurance rates will be.

#4 Your Home Address

Your home address matters. Insurance companies analyze a wide range of data, including your risk of getting into an accident or having your vehicle stolen based on your zip code. Some areas have higher rates than others; many urban areas have higher insurance premiums than surrounding areas. Before you move, you may want to check with your car insurance company to see how your potential new zip code could impact your insurance rates.

#5 Your Education Level

Your insurance company may ask you about your highest level of education completed because it is a factor they look at in determining your insurance rates. Higher education levels correspond with better insurance rates. If you are currently in school, you may be able to get a discount for getting good grades, which will require you to share your report card with your insurance company.

#6 Your Credit Score

Your credit score doesn't only impact if you are able to take out a loan; your credit score can impact the rate you pay for insurance. Just like with a loan, the higher your credit score, the better rates you will be able to secure. Insurance companies want to know that the people they are providing insurance to pay their bills on time.

Insurance companies ask you so many personal questions when you sign up for insurance coverage because they use those answers as some of the many factors that go into their calculations that determine your insurance premium rates.