Typically, car insurance for those younger than 25 years old have the highest premiums compared to other ages. Insurance rate depends on several factors such as gender, age, type of vehicle, your location, etc. Males have higher premiums than females because they have a much higher risk of collision.

Based on statistics, men are three times more likely to die in traffic accidents than women. According to the police, women are said to be more law-abiding than men. Men drive faster and are more careless.

Also, if men drive cars faster compared to women and then combine it with them having sporty and more expensive cars, then definitely their auto insurance will definitely become higher than women who tend to buy more conservative and cheaper cars.

So other factors that affect premiums are if your car is a sport car, expensive or large cars that can cause more damages in an accident. Another factor is the ZIP code or geographic location, which is one of the major determinants.

In short, premiums vary from state to state. For example, the average annual auto premium in Detroit is $5,072 compared to that of Eau Claire, Wisconsin which is $869.

Los Angeles, Washington, D.C., Philadelphia, and Detroit are in the top five most expensive cities for auto insurance premiums. This is because of being highly populated cities where more traffic, collisions and car insurance claims happen.

Other factors affecting rise in premiums

• Red-light running

• Number of uninsured drivers on the road

It would be good to have a car accident insurance if you have a vehicle. But who does it actually cover? Most car insurance policy covers your spouse, children, and even your friends.

According to auto insurance website, your friends are also covered since there can be instance that they will borrow your car one of these days. Also your friends are covered only on a one-time occasion. But your children’s friends who will drive your car are not covered.

There are exclusions though for car insurance policies. The policy plans may specifically outline that your insurance will only cover people who lives with you and will not cover those under the age of 18.

But also remember that there are uninsured or under insured motorists coverage, which means it doesn’t extend to people apart from you will drive your car.

The next time you get into a vehicle accident, you should already know these car insurance policies:

• Keep your auto insurance information in the glove compartment.

• Have a camera in hand to take pictures of the accident and the accident scene.

• Don’t leave the scene until the police have come and gone. Get their names and tell them what happened.

• Exchange names, addresses, driver's license and insurance information with the other driver.

• Review your policy again to make sure of your coverage.

• Report the accident promptly to your insurance company.

• Look at the declarations page of your insurance policy to see the types and dollar limits of your coverage.

• There is an insuring agreement. It details what your insurer will cover when it comes to protecting you. It will cite the exclusions, which you should know what they are.

• If there are vague statements or agreements in your policy, talk to your agent and/or the insurance department so that you can understand the terms better.

Also know that you have the right to refuse to agree with a repair job if you’re not satisfied with such as replacement of parts that are not original. So before actually owning one, know first these guidelines.