Auto insurers across the country are changing how they set prices. Using sophisticated databases and statistical formulas that slice and dice consumers into zillions of categories, insurers assess risk, adjust prices and tailor discounts to different groups of low-risk customers. The bottom line is: If you're a good driver, you may be rewarded with lower insurance premiums; if not, you could pay more.

Insurers say so-called tiered pricing, or pricing segmentation, helps them attract customers and boost potential profits amid increased competition. It also allows them to take on more high-risk customers or enter more urban areas than before.

To set prices, insurers look at traditional driver characteristics, such as age, gender, accident history and type of car, along with newer factors such as credit scores, coverage limits and other information so secret that some insurers won't disclose it.

Ohio-based Progressive is considered the leader in tiered pricing. It separates consumers into nearly 100 "price points." Progressive estimates that 1.1 billion possible combinations of customer data can go into a premium.

Ask about discounts for students, teenage drivers with good grades, people with clean driving records, hybrid car owners and for using anti-theft devices.

If you relocate within a city or state, check with your insurer to see if your auto insurance rate has changed. Some insurers set rates by ZIP code and even neighborhoods within ZIP codes.

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