1. 820 POINTS
    Pete Wittman
    President, The Wittman Group, Tennessee
    Auto insurance premium is calculated by utilizing a number of factors.  The logical factors are the area in which you live, your driving record and the type of car you drive.  In addition, premiums will also take into account the coverage you chose - comp & collision (& their deductibles), the amount of liability coverage, rental car, road side assistance, etc.;  if you had a recent lapse in coverage will increase premiums.  Most companies will also consider your "insurance score" which includes your credit.
    Answered on April 20, 2014
  2. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    Great question! Insurance companies use a great number of variables in determining your rate. The make, model and year of your car, for example. A new Porsche will cost more to insure than a 2005 Escort, for example. Where you live, the rate of uninsured motorists,and the auto theft rate are also  factors they consider. Your credit rating can also be a factor, by the way. Then you get into the profitability of the company and their fees. And then to the coverage that you desire,  your driving record, and your age. All of those factors help determine the rate that you will pay. If you shop around, you will find there can be big differences in those rates. If you need more information, please feel free to contact me, I'm happy to help! thanks for asking!
    Answered on April 21, 2014
  3. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Different states have different rating criteria.  In California the criteria are year, make and model of the car, annual mileage, location, and the driving records of the members of the household.  The same car would be charged different premiums if located in other states.
    Answered on April 21, 2014
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