Car insurance premiums are based on a formula that looks at several factors. These factors include age, driving record, how much your car is driven, where it is driven, where your care is stored and what coverage options you have selected. Before you buy a car insurance policy, it is important that you understand what affects your car insurance premiums.

1.  Driver Statistics 

The first things that are going to affect your car insurance premiums are your driver's statistics. These statistics include your age and your driving record. If you are under 25 or over 75, then chances are your premiums are going to be more expensive. This is because statistically you are more likely to be in an accident. Your driving record is also going to impact your premium's cost. If you have had an accident or if you received any traffic tickets in the last three years, then chances are your premiums are going to be higher.

2.  Car Statistics for Your Car

Statistics on the vehicle that you drive are also going to impact how expensive your car insurance premiums are. Safety features on your car and its performance in safety testing are both going to influence your rates. How likely the car is to be stolen may also be factored into your premium's rate.

3.  Driving and Parking Statistics 

The final set of statistics that will be examined when generating your premium amount will be driving and parking statistics. How much you drive your car, where you drive your car and where you park your car are all going to be used to determine your car's risk level for being in an accident, being damaged or being stolen. When your risk factors are high, so are your premiums.

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