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Auto insurance premium is the amount that an insurer charges for covering damages. The premium amount may differ according to the frequency and cost of potential accidents, or other losses such as theft. Auto insurance premium may vary with different insurers and according to the policy terms (the type of coverage sought.) Factors such as make and model of the car, the insured's driving record, years of driving and the number of miles the car is driven per year and the driver's age and gender determines the premium amount. The credit history of the insured person may also be a determining factor of auto insurance premium.