Calculating your car insurance payments can be tricky. To accurately predict costs associated with owning and insuring a car, such as the purchase price, maintenance expenses and optional coverages like collision and comprehensive, requires doing your math ahead of making any significant purchases related to vehicles. Doing the math beforehand will allow for any unexpected surprises down the line!

Vehicle make, model and manufacturing year are key factors when it comes to insurance premiums. Insurance companies use past accidents and thefts data as a basis for estimating how likely each specific vehicle type will be stolen or damaged; those more prone to being stolen or damaged may incur higher rates, while vehicles equipped with anti-lock brakes or airbags could reduce them considerably.

Your driving history can also have a considerable effect on the rate you’ll pay. Accidents and speeding tickets tend to drive up costs, while safe driving habits may help bring down rates over time. Many insurance companies such as GEICO and USAA provide discounted auto insurance policies for safe drivers.

Location can also have an effect on your insurance premiums. Drivers in cities usually pay more due to increased risk from accidents, car theft and vandalism. While some states mandate minimum levels of coverage; others allow individuals to choose which coverage best meets their needs and budgets. It is wise to purchase at least the level required by your state as well as additional protection equal or greater than your assets to safeguard you if someone files suit against you following an accident.