How are car insurance premiums calculated?

I am not looking for actual numbers necessarily, just a typical formula. e.g.

base_price_for_vehicle plus price_for_vehicle_modifications multiplied by percentage_for_owner_age multiplied by percentage_for_postal_code multiplied by percentage_for NCDHow are car insurance premiums calculated?
I wish I could give you a formula. The best I can do is list the factors that have an affect:



Age of driver

Gender of driver if under age 25

Driving history

Veh specifics (yr make model)

Cost to repair or replace said vehicle

Damage said vehicle likely to cause

Safety features of vehicle (alarms/airbags/daytime running lamps)

Territory (where vehicle is kept when not driven)

Purpose/Use of vehicle

Insurance credit score if over 19 in most states

Whether or not you have an established history with an insurance company



Hope this helps
by an eejitHow are car insurance premiums calculated?
There isnt a formula as such, but each answer you give either raises the figure or lowers it (occasionally).



For example, age=17 wil increase your premium by a few hundred pounds.

Vehicle = Land Rover will bring it down a little.



Postcdes have a significant effect.



Quotes can vary depending on the day or time of the month. Try it, it really does work
Your formula is pretty accurate. There could be other factors. Assigned risk (under 25, male vs female, past accidents or tickets), amount of coverage.



Distance travelled to work is one factor I know goes into it.



Also post codes are assigned "risk" values based on number of accidents or claims for that post code.



Also how long you've been with the company could be a factor and I know if you haven't had insurce in recents times that's also a factor, as they assume you were driving without insurance.



Type of vehicle also. Sports cars get higher rates.How are car insurance premiums calculated?
In addition to the above, they ask if your car will be kept in a garage or on the street, so I guess this makes a difference. Your occupation my also make a difference - people in the entertainment industry are charged higher premiums for some reason.
Holy cow, it's based on SO MUCH STUFF!



The VIN #, sex of driver, age, driving record, location, and sometimes credit... I'm sure there's more...
Here is a list of some of the variables that an auto insurance underwriter considers when determining your auto insurance rate:



Location the vehicle is garaged

Type and model of vehicle

Value of the vehicle

Coverages provided and limits of coverage

Deductible

Age of Vehicle

Your age

Your Gender

Your driving record

Vehicle theft rates for your type of vehicle in your territory/area

Number of miles you drive the vehicle per year

The auto insurance companies loss experience for that type of vehicle and drivers in your age and gender group

If your vehicle has any anti-theft devices

If the vehicle is used for commercial/business purposes, what are those, and how often.



These are a few of the factors used to develop your auto insurance premium. Having been an underwriter for an insurance company I can tell you each insurer has their own set of guidelines on how they price auto insurance.



I hope that helps.