Car insurance, as with any other type of insurance, is all about management of risk.
When you try to sign up for an insurance policy, your risk level as a driver and your car's risk level is evaluated.
The higher the risk, the more costly it will be for you.
There are tons of factors that determine your risk level, and there are tons of ways that you can bring your risk level down; and consequently, your insurance costs as well.
For instance, if you have been in an accident in the past, caught drunk driving, caught under the influence, received a speeding ticket, and such, then you will be considered as a high risk driver.
If your car is considered attractive to thieves, then your car is a high risk vehicle.
To bring the risk down, you can start driving defensively, pass defensive driving courses, and fortify your car's defenses against theft.
Car insurance companies, however, also look at the potential injury and damage that you and your vehicle, respectively, may receive in the event of an accident.
You can counter this simply by not driving if there's no need to drive and thus reduce mileage.
You can also install devices in your car that makes it more visible during the night or during foggy weathers.
You may also put in extra airbags so as to reduce the severity of injuries in the event of an accident, if any.
Now, besides your risk as a driver and your car's risk at being stolen, car insurance companies also look at your history as a customer.
As you may have noticed, a lot - if not all - of insurance companies give discounts to people who hold multiple policies or have insured more than one vehicle under them.
They also give discounts to those who have car insurance, health insurance, life insurance, or any other type of insurance in the same company.
Another type of background check that insurance companies do on you is your history as a consumer.
As mentioned above, insurance companies love loyalty.
Not that they don't appreciate you trying to get their service, but if they see you as someone who jumps from insurance provider to insurance provider, then you are considered a risk for them.
If you are notorious for a claim-filer, then they are likely going to frequently cover for you.
Also, your credit score can be a factor in several insurance companies' books.
A bad credit often reflects how you will be paying your insurance bills.
However, this may be unfair, as not all who have bad credit are bad drivers.
Therefore, there are a lot of other companies that don't care about your credit rating.