Car insurance premium costs are determined by a number of variables, many of which you actually have little control. For instance, if your neighbors have accidents and other claims in your local neighborhood, your car insurance rates will probably go up, even if you aren’t involved in any accidents.br br A better question to be asked is how much coverage am I getting in relation to what I am paying. If you only have the state minimum, your premium cost will be low but your liability risk will be extremely high. In contrast, if you have high liability coverage, say 250,000 500,000 coverage, your premium cost will be higher BUT your liability risk will be much lower. High liability coverage will cost you more money in premiums but will be an asset saver if you have an unfortunate for which you are liable.