When you want to insure your car, you must shop around and compare the premium rates offered by the various insurance companies. There are different factors that affect your premium rates. A sound knowledge of these factors will help you purchase cost-effective auto insurance. The insurance companies also offer various discount schemes to consumers so that they can obtain a cheap car insurance policy. What are the factors that affect car insurance premium rates?When you want to purchase auto insurance, the insurance companies assess various factors to determine your premium rate. Some of these factors are: • Driving record: If you have an accident-free driving record, the insurance companies will offer you a lower premium rate. • Credit score: Your credit score plays a decisive role in purchasing a low cost policy. With a high credit score, you can purchase a policy offering low premium rate. • Age and gender: Insurance companies view drivers  below the age of 25 years as more likely of being in an accident and so charge them a higher premium rate. If you’re a woman, you will be able to purchase a cheap car insurance policy as it is statistically proved that women are safer drivers than men.• Residing area: If you live in a place where there is less traffic on road, you will be offered a lower premium rate. This is because less traffic reduces the chances of accidents taking place.You will have to pay more for your policy if your car has fancy features on it or the particular car model is susceptible to theft.What are the discounts that you can obtain?When you shop around comparing premium rates,  you must ask the insurance companies about the  discount schemes they may offer you. Some of the discounts that you may obtain are: • Discount for safety features: If you’ve installed safety features on your car, the chances of it getting stolen reduces. So, insurance companies will offer you a discount while purchasing your policy. • Discount for students: If you’re an unmarried student below the age of 25 years, you can buy a cheap car insurance policy with the help of the student’s discount.• Defensive driver’s discount: If you’re over 55 years of age and have completed a class on defensive driving, the companies will offer you a discount.  • Multiple vehicles discount: On insuring more than one vehicle with the same company, you can also get a discount. If you wish to obtain a cheap car insurance policy, you can also consider purchasing it from the insurance company with home you have insured your house. But price should not be the only consideration. You must give due weightage to the types of coverage and the service background of the insurance company. In this way, you can purchase adequate insurance coverage for your car at an affordable cost.