When determining how much your car insurance premiums will be, many insurance companies use a car insurance calculator or software application to compute the rates. There are several factors and variables fed into these applications when trying to determine your car insurance premium. Depending on the variables that are entered into the application, the price you pay for car insurance can vary considerably.
Information Required for Car Insurance Calculations
Most of the time, insurance companies will require several types of information from you before they can quote you a policy premium. Your rate will be based on several factors. Some you can change and some you cannot.
Your policy premium will be based on your sex, your age and your zip code. Obviously, these are not things you can readily change. While you can always move, most people don't want to move just to get a better car insurance premium.
On the other hand, insurance companies will consider several variables that can be changed, such as: your driving record, the type of car you drive and your credit score. All of these can change over time.