Auto insurance premiums are calculated using a many factors—and some insurers give more weight to some factors than others. The cost of an auto insurance policy is generally determined by the amount of coverage, types of coverage chosen and other factors.
Your vehicle: there are many factors regarding your vehicle ghat determine the insurance cost. What your drive, how much you drive and where your vehicle is located.
The year, make end model of course are important as they determine the replacement or cash payout the insurance company will have to make in case of a total loss. The vehicle type also determines the cost of repairs which vary as parts and labor costs vary per vehicle.
Mileage: how much you drive is an indicator of the level of risk. Of course the more you drive, the more chance you have to get in an accident. Some companies use the number of miles you drive per year, others ask how you use your vehicle. Pleasure use is considered a low mileage use, commute use is moderate and business use increases the risk as it is usually a higher mileage use but also the medical payment increases if you carry customers with you in your vehicle
Drivers: your sex, age, credit and driving history are all factors that weight in the price calculation. Your driving record being the most important factor. Different types of tickets and accidents carry a different weight when it come to the cost of your insurance
Coverage: it goes without saying that the type and level of coverage you get play a role in how much your insurance costs but although not as much as you might think. Some coverage options are costly, others would cost as a little as a cup of coffee a year! So never decline a quote for an optional coverage. Always ask for the cost and higher limits as sometime you would be surprised you could double your coverage limits for few dollars.