7 Factors Which Decide Your Auto Insurance Premium

One of the things that most people will have to deal with at some point in their life is car insurance. But what are the things that can affect your auto insurance premium? Below are seven things that will affect the amount you pay for your car insurance.

1. Your Deductibles and Policy

When you are looking at a price for car insurance, one of the biggest things that will affect it is the amount of coverage that you choose and the deductible.

When you choose a higher deductible, it means that you’re going to have a smaller payment monthly. When you choose a smaller deductible, you’re going to pay more. When you choose more coverage, it will give you more protection and it also will increase your monthly costs.

There are also insurers who are going to give you a discount when you’re using them for more than one product, like home and auto.

2. The Vehicle You Drive

A car insurer will look at the safety rating of the vehicle you’re driving and they often will give you a discount if you’re driving a safe vehicle. But if you’re driving something flashy and dangerous, you’re going to pay more. A vehicle that offers a lot of passenger and driver protection will also mean that you will pay less. Therefore it’s a good idea if you’re looking at the safety ratings on your vehicle before you make a decision.

3. Distance and Frequency of Driving

People who are using their vehicle for long-distance commuting and business will usually pay a lot more than those who are driving less. When you are driving a lot of miles during the year, you’re going to have a higher chance of having an accident even if you’re a very safe driver.

It’s a good idea to think about joining a van or car pool or even take public transportation if you’re able to. Reducing the amount of mileage you drive could lower your rates.

4. Your Home Town

Generally urban drivers are going to pay a lot more for their car insurance when compared with those who live in rural areas. This is due to theft, crashes and vandalism.

Generally, due to higher rates of vandalism, theft, and crashes, urban drivers pay more for car insurance than do those in small towns or rural areas.

5. How Good a Driver You Are

If you haven’t been in an accident for a while, chances are that you are going to have a lower rate. But remember that you should always remain vigilant, keeping your stellar driving habits.

Although you’re unable to rewrite history, when there’s a crash on that record is going to always remind you that things happen. You have to be careful and cautious. As the time passes, those effects are going to decrease.

6. Your Credit

It’s been shown that certain credit problems will indicate that someone might file an insurance claim. A lot of insurance companies will use this information to help with determining your car insurance cost. Having good credit will often decrease the amount you’ll pay for car insurance.

7. Your Marital Status, Age, and Sex

Drivers who are under 25, especially when they are single men, are more likely to have an accident. So you are going to pay more when you’re under 25. If you’re still in school, you might be able to get a discount. The majority of insurers provide a discount if you’re a student and you have good grades.

Most of these things are factors that you can control. Be careful when you are driving and do what you can to help your credit score. Make sure that you choose a safe car. Then you’ll discover that your insurance rates are not as expensive.


WhitCo Insurance agents provide this free service just for you. Meet with our agents in person or connect online to review your coverage to keep up with your changing insurance needs. If you would like us to explain your insurance policies in plain English, give us a call at 866-298-7608.

We hope you will benefit from our web site and can take advantage of our insurance experience in Punta Gorda and North Port, Florida.