Auto insurance premium rates are based on a variety of risk factors, and vary by company. Your age, gender, the type of car you drive, the number of years insured, any prior accidents, claims, or traffic violations are all factors that may be taken into consideration when calculating insurance premiums. For example, a driver that has been insured continuously for the past 5 years with no accidents or tickets will have a much different rate than an inexperienced driver who just obtained their drivers license, or a driver that has been in a recent accident.
Another factor that affects the cost of your premium is how often you drive. If you have a long commute to work every day, you are statistically more likely to be involved in an accident, and will end up paying a higher premium. If you use public transportation during the week, only driving your car on weekends, you should expect to pay a lower premium than someone who uses his or her car daily to commute to work.
“By increasing your deductibles, it is possible for you to decrease your monthly or yearly premium!”
~Chad Mullen, Lane’s Insurance
If you are concerned about the price of your premium, it is a good idea to call your agent and discuss whether or not you can decrease the amount of coverage included in your contract. By increasing your deductibles, it is possible for you to decrease your monthly or yearly premium. Also, don’t be afraid to ask your insurance broker to check for discounts that you may be eligible for.
This blog post is part of the “Top 10 Auto Insurance FAQ’s” eBook.