Your car insurance premium is the amount of money you pay to an insurance company for active coverage. This amount can vary widely based on several factors. Always check with your local Independent Agent first. He can help you compare car insurance premiums and help you decide on the best policy for you. Paying a smaller premium isn’t always better. Paying less often means you’re getting less coverage.
Adjusting your policy based on coverage is one way to affect the cost of your premium. Simply put, the more coverage you have the higher the premium you pay. If you want a low deductible you will be paying a higher car insurance premium. If you opt for full coverage instead of basic liability, you will pay more. There are many features in an auto policy that will affect your premium, but policy features aren’t the only thing that can affect what you pay for your car insurance premium.
Statistical Factors Affecting Your Car Insurance Premium
The cost of car insurance premiums is also based on statistics that the individual driver cannot control. Individual history is a small factor, but statistics are the overriding factor for the cost of a car insurance premium. Let’s take two factors in the following comparison: the driver’s age and the type of car.
First, let’s look at a 21 year old driver seeking car insurance coverage on a red sports car. He is a young driver, which statistically increases risk for the insurer. Add in the red sports car, another risk factor. Both affect his car insurance premium. Statistically he will be paying a lot more for his car insurance than a 47 year old driver of a 4-door sedan.
Factors Affecting Car Insurance Premium Payments
Driver history is also a factor. Keeping a history of good, clean driving will help keep your premiums low. Avoid accident claims. If the insured driver makes an accident claim, it’s likely that the premium on the policy will go up, especially if the accident report shows he is at fault.
There are many other factors that may or may not affect your car insurance premium. Including, Geography, Driving Violations, Vehicle Type, Credit Rating, Occupation, Education, Driving Distance to Work, Miles Driven Each Year, Years of Driving Experience, Business Use of Vehicle, Your History of Car Insurance, Theft Protection Devices, Multiple Cars and Drivers. When you consult with your Local Agent he will be able to better help you with your car insurance and discuss your premium with you.
One factor that has become huge over the last few years is inclement weather. Hurricanes, straight-line winds, wind driven hail, floods and tornados have all occurred much more frequently than expected. States that historically have had little in the way of windstorm losses have had catastrophic losses. Your local independent agent has the facts and figures and knows what is happening in your area.
Car Insurance Premium Payments
Car insurance premiums are usually paid monthly or semi-annually. However, most insurance companies offer a wide variety of other options to choose from when setting up your payment plan, including quarterly and annually. Check with your Local Agent. Your car insurance premium can be setup to be paid conveniently via automatic payments from your checking or savings account. Most companies offer a place online where you can login and monitor your car insurance policy and payment history.
Your Local Agent is there to help and is always the best source of information when shopping for and comparing car insurance premiums. Check the top right of this page for your closest local Insurance agent.
For more information on why a cheap premium might not be the best for you read this.
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Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.
While the majority of people want an agent involved in their purchase of insurance, many people want to see if they can save money by buying direct from the insurance company. Others want to try a direct quote to make sure the premium they’re now paying through their local agent is fair. If you want a quote for your coverage, click on the competitive quote button on the right side of this page.