There are many factors that influence the price you pay for auto insurance. The average American driver spends about $850 a year. Your premium may be higher or lower, depending on:

Your driving record
The better your record, the lower your premium. If you've had accidents or serious traffic violations, you will pay more than if you have a clean driving record. You may also pay more if you haven't been insured for a number of years.

The number of miles you drive each year
The more miles you drive, the more chance for accidents. If you drive a lower than average number of miles per year, less than 10,000, you will pay less. For instance, some companies will give discounts to policyholders who carpool.

Where you live
Insurance companies look at local trends, such as the number of accidents, car thefts and lawsuits, as well as the cost of medical care and car repair.

Your age
In general, mature drivers have fewer accidents than less experienced drivers, particularly teenagers. So insurers generally charge more if teenagers or young people below age 25 drive your car.

The car you drive
Some cars cost more to insure than others. Variables include the likelihood of theft, the cost of the car, the cost of repairs, and the overall safety record of the car.

Your Credit
For many insurers, credit-based insurance scoring is one of the most important and statistically valid tools to predict the likelihood of a person filing a claim and the likely cost of that claim. Credit-based insurance scores are based on information like payment history, bankruptcies, collections, outstanding debt and length of credit history. For example, regular, on-time credit card and mortgage payments affect a score positively, while late payments affect a score negatively.

The amount of coverage
Of course, like anything else, the more coverage you have, the more you pay. However, you may qualify for discounts.

SOURCE: Insurance Information Institute

A large number of employees run errands, make deliveries and visit customers every day, but what if you get in an accident in the course of employment - are you covered by your personal auto insurance policy (PAP)? Not knowing the answer could result in significant financial detriment for you and your family.

With 240 million registered motor vehicles in the U.S. it is estimated that one-fourth of those are being used in the course of work. While in most cases the PAP will cover you for business use of a personal vehicle, there are situations where it will not.

Like most insurance questions, the answer depends on circumstances like what kind of car you drive, if the car belongs to you or someone else, and what business you are in.

The typical PAP excludes coverage for the use of any vehicle in the course of business other than farming or ranching. However, a broad exception to this exclusion allows coverage for the business use of a vehicle if it is one of three types: 1) a private passenger auto, 2) a pickup or van, or 3) trailer while used with No. 1 or 2. This implies that as long as the vehicle is one of those three types, coverage remains intact after the accident.

Policyholders should proceed with caution, since some PAPs are not as generous. Some versions may be more restrictive towards pickups or vans, possibly including a gross vehicle weight (GVW) limitation. Consult your policy before driving any pickup or van for work.

Policyholders should understand that any coverage permitted for business use of personal vehicles by the PAP is not intended for these three vehicle categories:

• Commercial-type vehicles. The PAP restricts business use to private passenger autos, pickups and vans. While they can be purchased personally, box trucks, tractor trailers, shuttle busses and other commercial-type vehicles do not fit this description - such vehicles require a commercial auto policy.
• Furnished or available for regular use. Often called the “company car” exclusion. If you are given a company car as a benefit to your employment, make certain that you are covered by your employer’s auto insurance policy. If not, specific action is required to extend coverage under your PAP; it will not do so automatically. This coverage change is often inexpensive and can be done easily.
• Vehicles that are the business. A PAP will not cover your vehicle if you use it to carry people for a fee, such as a taxi, limo or shuttle. The only exception is a share-the-expense car pool. If you are delivering pizzas, auto parts, newspapers or other goods, proceed with caution. Many PAPs also remove coverage for vehicles that are used to deliver food or other items for a fee.

According to new data from the National Association of Insurance Commissioners, Iowa has the lowest combined average auto premium in the nation at $620. The report, released on Dec. 1, 2009, uses information from the 2006/2007 Auto Insurance Database Report.

Throughout the United States, rates continued to fall from levels seen earlier this decade. The combined average premium nationally was $912, down from $936 the previous year. Those averages stood at $954 in 2005 and $967 in 2004.

Washington D.C. had the most costly rates at an average of $1,289, which was down $27 from the previous year. Other costly states for auto insurance premiums include Louisiana ($1,262); New Jersey ($1,228); New York ($1,179); and Rhode Island ($1,174).

According to the report, Wisconsin is second behind Iowa with an average premium of $642, followed by North Dakota ($658), South Dakota ($669) and Nebraska ($689).

The state combined average premium is calculated by summing the average premiums for liability, comprehensive and collision coverages.

Source: A.M. Best

While we certainly hope that you are never involved in an auto accident, we realize that they do happen. That's the reason we're in business; that's the reason you trusted us to find the right auto insurance for you. If you are ever involved in an accident, the following suggestions will help the claim process move ahead smoothly. Please print this out and keep a copy in your glove box.

1. Make sure that everyone is unhurt - in your car and any others involved. If anyone is injured, call 911 immediately. Even if you think your injuries are minor, it is probably a good idea to have them checked out - either at the hospital or with your family doctor. A seemingly minor injury could turn out to be more serious.
2. Call the police. They can help defuse a difficult situation and also ascertain who is at fault. Make sure that police on the scene get the names, addresses, and phone numbers of all other involved parties. Ask for a copy of the police report from the officer.
3. If you happen to have a camera with you - or a cell phone that is camera ready - take some photos of the vehicles involved, the general area where the accident occurred, and skid marks.
4. If possible, safely move the cars out of the way of traffic.
5. Do not admit or discuss liability with anyone other than staff at our office or your insurer.
6. Get the following information about everyone involved in the
accident: name, address, driver's license number, license plate number, description of car, e-mail address, all phone numbers (home, work, and cell), and auto insurance information. Also obtain contact information from any witnesses to the accident.
7. Report the accident immediately to our office. 563-324-1011.
8. While the details are still fresh in your mind, write your own account of the accident. Be sure to make note of anything the other involved parties said about their injuries or as to how they may have contributed to or avoided the accident.

SOURCE: IRMI Personal Lines Pilot: An E-Mail Newsletter for Personal Lines Insurance Professionals, Issue #65, copyright December 22, 2008, International Risk Management Institute, Inc., Dallas, TX.

American culture attributes the car we drive to our persona - defining our values, our sense of style, and to some extent, our eccentricities. It's the reason that Corvette owners wave to each other, and why everyone feels the need to catch a look to see who's driving the Hummer. In the same manner, the car we drive also determines how much we pay for car insurance.

Easily an afterthought to the monthly car loan payment, many owners are "car-broke" because of their insurance costs, and don't know it. Are you driving one of the most expensive cars to insure?

10 Most Expensive to Insure
1. Nissan GT-R
2. Dodge Viper
3. BMW M6
4. Ford Shelby GT500
5. Mercedes G-Class
6. Audi S8
7. BMW M5
8. Hummer H2
9. Lexus IS F
10. Porsche 911

10 Least Expensive to Insure
1. Hyundai Santa Fe
2. Kia Sportage
3. Hyundai Entourage
4. Kia Sedona
5. Kia Rio 5
6. Honda Odyssey
7. Smart Fortwo
8. Saturn Vue
9. Mazda Tribute
10. Chrysler Town and Country

*Information comes from insure.com, last updated May 28, 2009.

There are numerous factors that determine how much a person pays for insurance, including gender, age, driving record, location of residence, annual driving mileage, credit scores, and most importantly, the car we drive.

Although common-sense holds that the more expensive a car, the more expensive the insurance, this is not always the case. Insurance rates differ greatly between makes and models. If a car performs well in crash tests, it's not frequently stolen, and has additional safety or anti-theft devices, it will generally cost less to insure it. On the other hand, if your car is flashier, attractive to thieves, and doesn't wow anyone in the crash tests, it will cost more to insure.

Cars that are particularly associated as "family cars" tend to have lower insurance premiums. These types of cars include minivans, family sedans, and station wagons. Cars that are used primarily to transport a family are generally involved in fewer accidents, due to safer driving habits associated with those who transport family members.