# Premium Estimation Reference

## Estimation Procedure

To estimate a user's annual premium:

1. **Start with state average** — look up in the State Average Premiums table below
2. **Apply coverage level factor**:
   - Minimum (state min only): × 0.45
   - Standard (100/300/100): × 0.85
   - Full (comprehensive + collision): × 1.0
3. **Apply age factor** — look up in Age Factor table
4. **Apply driving record factor**:
   - Clean: × 0.85
   - Minor violations: × 1.1
   - Major violations: × 1.5
   - DUI: × 2.0
5. **Apply credit tier factor**:
   - Excellent: × 0.80
   - Good: × 1.00
   - Fair: × 1.30
   - Poor: × 1.80
6. **Apply mileage factor**:
   - < 5,000 miles/year: × 0.85
   - 5,000-10,000: × 0.95
   - 10,000-15,000: × 1.00 (baseline)
   - 15,000-20,000: × 1.10
   - > 20,000: × 1.20
7. **Apply homeowner discount** (if applicable): × 0.92
8. **Present as ±20% range** around the calculated midpoint

## State Average Annual Premiums (Full Coverage)

| State | Avg Annual | State | Avg Annual | State | Avg Annual |
|-------|-----------|-------|-----------|-------|-----------|
| AL | $2,160 | KY | $2,640 | ND | $1,560 |
| AK | $1,800 | LA | $3,360 | OH | $1,680 |
| AZ | $2,280 | ME | $1,320 | OK | $2,280 |
| AR | $2,040 | MD | $2,400 | OR | $1,920 |
| CA | $2,400 | MA | $1,680 | PA | $2,040 |
| CO | $2,520 | MI | $3,480 | RI | $2,520 |
| CT | $2,640 | MN | $1,920 | SC | $2,160 |
| DE | $2,400 | MS | $2,160 | SD | $1,800 |
| DC | $2,280 | MO | $2,040 | TN | $2,040 |
| FL | $3,120 | MT | $1,800 | TX | $2,280 |
| GA | $2,520 | NE | $1,680 | UT | $1,920 |
| HI | $1,560 | NV | $2,640 | VT | $1,440 |
| ID | $1,440 | NH | $1,440 | VA | $1,800 |
| IL | $2,040 | NJ | $2,520 | WA | $1,800 |
| IN | $1,800 | NM | $1,920 | WV | $2,040 |
| IA | $1,560 | NY | $3,000 | WI | $1,560 |
| KS | $1,800 | NC | $1,680 | WY | $1,680 |

**Most expensive states**: MI ($3,480), LA ($3,360), FL ($3,120), NY ($3,000)
**Least expensive states**: ME ($1,320), ID/NH/VT ($1,440)

## Age Factor Table

| Age Bracket | Factor | Impact |
|-------------|--------|--------|
| 16-19 | × 2.00 | +100% (highest risk) |
| 20-24 | × 1.50 | +50% |
| 25-29 | × 1.10 | +10% |
| 30-39 | × 1.00 | Baseline |
| 40-49 | × 0.95 | -5% |
| 50-59 | × 0.90 | -10% (lowest rates) |
| 60-69 | × 0.95 | -5% |
| 70+ | × 1.15 | +15% |

## Tips to Lower Premium

- Compare quotes from at least 3-5 insurers
- Consider raising deductible to $1,000 (saves 15-25%)
- Bundle with homeowner's/renters insurance (saves 5-15%)
- Ask about telematics/usage-based programs
- Check all applicable discounts (see discounts-reference.md)
- Improving credit score can significantly reduce rates
- Under 25? Complete defensive driving course for 5-10% discount