How to calculate auto insurance depending on various factors? The cost you are charged can be very high or comfortably low for you. The average amount is around $815 for a year, and if it is lower, a lot of factors may be affecting it. Putting all the factors together you can answer the question of how to calculate auto insurance. A few important factors are where you live and what car you drive.

The major factors affecting the insurance are as follows:

Basic demographics
When you buy a car, the demographics of age, sex, and marital status affect the insurance cost. The insurance company holds a lot of data that describes each of these factors and how they will affect the claims. If you are below the age of 25, unmarried, and male, then you will pay more than an older, married woman who will not easily file a claim. The state you live in affects the car insurance; for example, Michigan is an expensive state as they provide unlimited lifetime personal injury protection from car crashes. Montana is second as it has the highest rates of accidents and crashes. In the expensive range comes Washington DC, New Jersey, Rhode Island, and Connecticut. The areas that face more natural disasters also see a costly premium.

The car you drive
A person never thinks that the price of his car affects the insurance rate. The company calculates how much insurance you will pay according to your demographics. They assign the risk on the car. If the car you buy is fast, then you will have to pay more premium. If you buy a family car you will end up paying less premium than that of a pricey car. The most expensive insurance is paid by owners of Nissan GT-R Nismo, Dodge SRT Viper, Mercedes-Benz SL65 AMG Convertible, Porsche 911 Carrera S Cabriolet and Audi R8 5.2 Spyder Quattro had the most expensive insurance. While Jeep Wrangler Sport, Honda CR-V, Jeep Patriot Sport, Honda Odyssey, and Dodge Grand Caravan are less expensive. A used car is less costly to insure as the alarms, anti-lock brakes, safety equipment, and anti-theft devices are already present.

Driving history
The history of a vehicle affects its insurance. The number of tickets and violations you have, higher the rates are. Types of tickets you get also matter and affect the insurance premium.

Driving habits
Your daily driving routine by car; how long does it take, commute for business etc., or does it stay in the garage until the weekend when you take it out for a weekend trip, are you parking in the street, shared space or garage? All these factors affect the insurance premium rate.

Amount of coverage
The amount the car insurance company will pay you in case of an accident will affect the premium. A deductible is what you will pay from your pocket when you claim. A common amount is $500 which can be as low as $100 or as high as $2000. If you have a lot of assets, you will want to protect them with a larger coverage.

Coverage
There are various types of coverage; bodily injury, property damage, personal injury protection – is not required in every state – it helps to pay medical bills after a crash, but is not required if you have health insurance. A collision cover and a comprehensive cover is required if you are financing or leasing your car. A comprehensive coverage covers damage to the vehicle, vandalism, car theft, and other calamities, but no crash. Collision cover is like a comprehensive cover and covers the actual crash-related damage.