Premiums are dependent on a number of factors

The car insurance that you purchase and the premium that you pay is dependent on various factors such as the car that you are driving, your marital status, where you are living and your age. There are certain things that you can do to lower your car insurance premium such as choosing a different car and many more.

• Bodily injury liability
  Before you actually purchase a car, know these terms that are used. These components make up the cost for the insurance premium.
  This will cover all the legal costs, injury and death claims against you if your car kills someone or injures someone.
• Property damage liability
  This will cover the costs if your car damages any property during a course of an accident. This is required in all states but three since this liability coverage protects the other party.
• Uninsured motorist protection
  Its been estimated that in some states, almost 50% of the motorists are uninsured. This coverage protects those that are travelling in inside the car (the driver and the occupants) from the injuries that may be caused by uninsured drivers or hit and run drivers.
• Medical payments
  This is optional in some states. This coverage pays for the injuries that are caused to the driver and the occupants of the car. But in states that have “no fault”, personal injury protection is substituted as part of the basic package.
• Collision coverage
  In cases of collision, this coverage will the amount the amount as recorded on the books. However this coverage has a deductible. As always, higher the deductible, lower is the insurance premium and vice versa. This coverage is optional, but a leasing company or a lending financial institution would definitely require it.
• Comprehensive coverage
  This will protect your car against theft, vandalism, fire, floods, winds and other non-accident reasons. This coverage also carries a deductible.
  

Other factors for premium allocation
The type of car that you choose will definitely affect the insurance premium that you pay. But the insurance premiums can also be based on the database of the individual companies. For example company X may have more claims related to small cars and pay charge a higher premium for insuring small cars. While Company Z may have higher insurance claims for SUV’s and charge a higher premium rate for insuring those. That’s why it makes sense to shop around for rates before you finally purchase a car insurance premium.

The premiums are definitely based on the model of the car
This price would include the cost to replace the car in case the car is stolen, the repair cost (how expensive it is to repair the costs that include the cost of the parts and the labor). Companies also levy a surcharge on the cars that are stolen the most or those that are involved in the accidents the most.

Know the safety record of the cars
The Highway Loss Data institute (HDLI) http://www.iihs.org/ collects the data regarding the loss of life, property and injuries caused due to the accidents and seeks to minimize those losses. They maintain the ratings of the vehicles that include how crash worthy they are. This means, “How well the occupants are protected in case of a crash or an accident”. The list of “Top Safety Pick” 2009 is out and is listed for all types of vehicles.