Car insurance is one of the indispensable factors that keeps in mind while buying a car. Whether you buy a new car or decide to invest in a used vehicle, car insurance is something that can keep you and your family financially protected against physical damage or bodily injury resulting from an accident. Read on to know how car insurance is calculated.

Age
Age is one of the most factors that determine your car insurance price. Generally, younger drivers are less experienced and are more prone to accidents than old and experienced drivers who are less likely to make expensive claims. When it comes to how car insurance is calculated, individuals below 25 will get an expensive car insurance.

Geographic location
The state, city, and ZIP code plays a vital role in deciding your car insurance premium. If you live in an urban, well-built area with many cars on the road at a time, then you will have to pay more for your car insurance premium. The cities are more prone to road accidents, theft, and vandalism that call for an expensive claim.

Type of vehicle
The cost of your vehicle is an important factor to consider. If you drive a rare car that has expensive spare parts, it will definitely more to insure it against any possible damage, accident, or theft. Vehicles that are susceptible to passenger injuries are more likely to have an expensive insurance premium. You can get car insurance premiums at a lower price by adding safety alarms, immobilizers, GPS tracking devices, and other protective gear.

Driving record
When you apply for car insurance, the company will look into your driving records. Here, you will have to provide your records of all the past claims you have made. If you have gone a few years without a claim, accident or traffic rules violation, then you will see a dramatic decline in your insurance policy cost. Certain insurance companies provide an annual bonus if you do not make any claim throughout the year.

Gender and marital status
This factor also plays a vital role in determining how car insurance is calculated. For women, car insurance costs are lower as female drivers have few road accidents and are less involved in cases of driving under the influence of alcohol or drugs. On the other hand, male drivers, that too unmarried, are more prone to accidents. This does not imply anything about their driving skills, but the frequency and the total number of miles they drive.

These are some of the factors that decide how car insurance is calculated. There are several car insurance providers available in the market, so it is always great to compare various policies before picking one.