Many people come to our agency because they don't understand why their auto insurance is increasing. The national average annual premium for one auto is around 800 bucks. While this is an average, we all know people who claim to be paying under $600 per year and some of us have the pleasure of paying premiums over $1,000 per vehicle. Why the discrepancy? Is there anything we can do to keep our premiums on the low-end of that spectrum?
Understanding what factors go into your auto insurance premiums is the first step toward figuring out the pricing game. The Insurance Information Institute recently released an article outlining 8 key factors in the auto insurance pricing game. Some of these are within your control, and some are not. The key factors include:
- Driving Record
- Vehicle Usage
- Your Age
- Your Gender
- The Car You Drive
- Your Credit
- Where You Park Your Car and Where You Live
The last factor is really the most important and the most controllable: The type and amount of coverage you choose to carry.
I recently had someone call in because she received a $20 gift card from a national insurance provider if she called an 800-number and allowed them to offer a quote on her auto insurance. At the end of the day, the 800-number agent offered a low premium with much, much lower coverage than what this client currently carried. Had she opted for the low premium and then had a claim, who knows whether she would be covered!?
If you have any questions about how these factors may influence your premium, talk to you independent insurance agent today!