Insurance companies determine the rates of an automobile policy by weighing the risks involved. What lowers a person's rates? Anything that reduces the risk and cost for the insurance company will also help decrease individual insurance rates. For instance, the type of car a person drives directly affects the insurance rate. When shopping for a car, a person should consider the vehicle type, the risk of theft, the cost of repair and the risk of injuries in order to secure the best insurance rates.

Full-sized family sedans and minivans typically receive lower rates; drivers of family vehicles tend to have fewer accidents. This is not true in every case, but the majority of drivers of a certain demographic usually determine the rate for the rest of the group. Sedans and minivans are also less likely to be stolen by thieves, which helps to lower rates.

Less expensive cars typically receive lower rates. The price of the car usually reflects the price of its parts, which have to be replaced in the event of an accident. Cars with sheet metal panels, as opposed to aluminum, are less expensive to fix. In addition, cars typically receive lower rates than sport utility vehicles (SUVs). In an accident, a car normally causes less damage to the other vehicles involved than a bigger SUV, so there would be potentially fewer repair expenses.

Vehicles with safety features typically receive lower rates. When a car has safety features such as day-time running lights, airbags and anti-lock brakes, fewer serious injuries may occur, resulting in fewer medical expenses. The Highway Loss Data Institute (of the Insurance Institute for Highway Safety) compiles data to determine the losses in terms of collision for individual cars and classes. The vehicles with smaller collision losses will be the least expensive to insure.