What do car insurance premiums depend on?

Answer 1

Auto insurance premiums depend on many different factors and are almost impossible to figure without a computer. The factors involved include driver age, driver violations, driver sex, driver accidents, vehicle age, vehicle symbol, driver zip code, how driven (miles to work, pleasure only, business use), deductibles, coverage limits, discounts, etc. One of the companies I represent has up to 44 different factors for each driver. Each company has their own rating system.

Symbols for the vehicles are also made up of many factors including cost of the vehicle, cost of parts, and frequency of claims on this vehicle. ISO is a company that creates policies, applications, and many items that are standardized for company use like the territories. Many companies use the territories and symbols from ISO but some modify these standardized items or have their own.