Auto Insurance & How Customer’s Switch To The Right Policy

Car insurance premiums are the amount you pay for your insurance policy. But have you ever wondered how insurance companies determine your premium? Premiums are calculated based on various factors that assess the risk of insuring you. Below are the key factors that influence how much you pay:

1. Trusted Driving Record

• Accidents & Violations – If you have a history of accidents or traffic tickets, your premiums will likely be higher.
• Safe Driving – A clean driving record can qualify you for lower rates.

2. Customer Age & Experience

• Younger Drivers Pay More – Teenagers and younger people tend to have higher rates due to inexperience.
• More Experience Means Lower Rates – Older, more experienced drivers usually pay less.

3. Vehicle Type

• Luxury & Sports Vehicles – More expensive or high-performance vehicles cost more to insure.
• Safety Ratings – Vehicles with high safety ratings can qualify for lower premiums.

4. Selected Needed Coverage & Deductibles

• More Coverage = Higher Premiums – Full coverage (liability, collision, comprehensive) costs more than minimum coverage.
• Higher Deductible = Lower Premium – If you agree to pay a higher out-of-pocket cost in case of a claim, your premium decreases.

5. Location & Zip Code

• City vs. Rural Areas – Drivers in cities often pay more due to higher accident and theft.
• State Regulations – Insurance laws vary by state, affecting premium costs.

6. Credit Score (In Some States)

• Higher Credit Score = Lower Premiums – A good credit history can lower your costs in states that allow credit-based insurance pricing.

7. Annual Mileage

• More Driving = Higher Risk – The more you drive, the greater the risk of accidents, leading to higher premiums.
• Low-Mileage– Some insurers offer discounts for driving less than a certain number of miles per year.

8. Insurance Claims History

• Past Insurance – If you’ve filed multiple claims, insurers may consider you a higher risk.
• Accident-Free – One of the best ways is staying accident-free for a period of time can reduce your premium.

9. Policy Bundling

• Multi-Policy Discounts – Bundling with homeowners or renters insurance can save money.
• Loyalty & Safe Driver Discounts – Some companies offer lower premiums to long-term customers or those with a safe driving history.

How to Get the Best Insurance Rate? Explore different products.

• Compare Quotes – Different insurance companies calculate premiums differently, so shopping around helps. We have access to various companies and we deliver the best quotes to you for comparison.
• Ask About Discounts – Many insurers offer discounts for good driving, bundling policies, or having safety features in your car.
• Improve Your Credit Score – If your state allows credit-based pricing, maintaining a good credit score can help.
• Adjust Your Coverage – If you drive an older car, you might not need full coverage, which can lower your premium.

Get an auto insurance quote today by clicking the button at the bottom of the screen and see what your coverage options are.