• How Car Insurance Premiums are Calculated

    When calculating car insurance premiums, insurance companies use many different factors and variables to compute rates. Here are some of the most common factors used in determining your car insurance premiums.

    Your Driving Record

    Probably the biggest factor in determining how much car insurance you will pay will be your personal driving record. Car insurance companies will evaluate your driving record based on the number of years you have been driving, the number of tickets you have received as well as accidents you have been involved in. The longer you drive safely and avoid tickets and accidents, the cheaper your insurance rates will be.

    The Car You Drive

    How much car insurance you pay will always be directly associated with the type of vehicle you drive. Some vehicles are much more expensive to repair or replace than others, and will require higher insurance premiums. Also, some types of high performance vehicles such as sports cars are often considered to be more dangerous than others because of their higher speed capabilities.

    Other Factors

    Your insurance company will also consider such factors as how use your automobile and where you live. The more you drive your vehicle, the more likely you are of being involved in an accident. Also, if you live in a high crime area where car theft is common, you’ll be required to pay higher premiums as well.

    Your coverage premiums will also be based on your age and gender. Older drivers tend to be more safe than younger ones, and women always pay less than men because men usually drive faster.