How are car insurance premiums calculated?

Premiums are determined according to the type of car, the driver, location and the type of policy. Your provider might ask about the people who are likely to drive your car, and impose restrictions according to this information. The age, experience, claims and driving record of the potential driver(s) will influence the level of coverage and the premium.
The type of car also affects the amount you must pay. Vehicles with moderate repair costs, such as popular family cars, will have lower premiums. Cars are also segmented by group ratings. Insurers use them to standardize the prices according to type, brand and year of the car.
The riskier you seem to your insurer the higher the premium you will pay. The categories vary, but the most determinant factors are sex, age and address. You will find that insurance premiums are more expensive in urban areas. Accidents are more common in cities than in the country side. Also, male young drivers are charged the highest premiums because by statistics they are found to cause most of the accidents. Some insurers might also charge high premiums depending on your profession (i.e. barman, chef, builder). The conditions vary across the different providers. Make sure you compare several products before you make a decision.