After you apply for car insurance, the insurance company determines if you qualify for the coverage. If you qualify, the insurance company decides your car insurance premium. Car insurance premiums vary and are based on several factors.

Driving Record

If you have not had any accidents or traffic violations, your rate will probably be lower than a driver with a driving record that contains wrecks or traffic violations.

The Amount You Drive

If you do not drive often, or do not drive much in a busy city, your rates will most likely be lower than a person who drives a lot or in heavy traffic. Driving a lot, or in heavy traffic, increases the risk of an automobile accident and the risk of having to file an insurance claim.

The Type of Car You Drive

If you have a rather average car, your rates will probably be lower than if you drive a sports car or luxury car. Sports car drivers, on average, file more insurance claims, and luxury cars are at a higher risk for auto theft.

Male vs. Female

If you are a woman, you will most likely pay a lower rate for your car insurance premium than a man would. Statistically, men file more car insurance claims than women.

Your Location

If you live in a community where there is little car theft and the rate of auto accidents is low, you will probably pay less for your car insurance than someone who lives in a place with a lot of car theft.

Age of the Driver

If you are older than 25, in most cases you will pay less for your car insurance premium than younger drivers. Statistically, drivers under 25 have more traffic accidents than older drivers.

Source:

State Farm Insurance

CarInsurance.com

Insure U-National Association of Insurance Commisioners

Resource:

National Association of Insurance Commissioners