How Do Car Insurance Companies Calculate the Rates They Charge?

Depending on your jurisdiction, the insurance premium you pay, can be either set by the government or determined by individual insurance companies, based on a framework of regulations that are set by the government.

Figuring out the insurance premium that an individual companies will charge you, is a bit like putting different pieces of a puzzle together, because car insurance companies combine a number of different elements to arrive at your individual premium. The interesting part of it is that they all have a slightly different way of looking at things, and this produces a variation in prices between companies.