Common Factors That Impact Your Car Insurance Costs

Common Factors That Impact Your Car Insurance Costs

Factors that affect your auto insurance premium.

Almost every motorist across the country is trying to find ways to save on their auto insurance. Since this coverage is mandatory, it helps to know how to control your outgoing costs for coverage. Believe it or not, but car insurance rates aren’t arbitrary numbers made up by auto insurance providers. Instead, they’re carefully thought-out calculations. Using your personal information and company claim data, car insurance companies make an educated guess on how likely you are to file a claim. Find out what insurers look at when compiling your auto insurance premium.

Your Car

Certain types of cars cost more to insure. However, if you drive a vehicle with built-in security features like daytime running lights, anti-lock brakes, and anti-theft devices, you could earn yourself a discount on a premium.

Your Driving Record

If you’ve been in multiple accidents, your car insurance rate will likely be higher than those who have a clean record. If you’re a new driver and are looking for your first car insurance policy, you can expect to pay more for insurance.

Annual Mileage

If you have a long commute to work every day, you’re more likely to get involved in an accident than someone who works from home. More miles behind the wheel means more exposure to risk.

Your Age and Gender

Generally, males will pay more for auto insurance cause they are seen as riskier drivers. Younger, less experienced drivers often may more for car insurance than older drivers.

Coverage and Deductible

You may choose to raise your car insurance limits and opt for additional protection. Choosing more coverage will improve your protection but may raise the rate of your premium. In addition, the higher your deductible (the higher your out of pocket cost in the event of a claim), the lower your premium.

Your Credit History

Many insurance companies look at your credit history when determining your auto insurance premium to see how financially stable and responsible you are. Maintaining a good credit can have a positive impact on the cost of your car insurance.

Understanding how your premium is calculated can help you lower your costs. For example, you can maintain a good, clean driving record, lower your annual mileage, and choose coverage that suits your budget!  For your car insurance needs, contact the professionals at Lloyd S. Berkett Insurance Agency.

11150 W. Olympic Blvd.
Suite 610
Los Angeles, CA 90064

(310) 857-5757
(800) BERKETT | 237-5388
Fax: (310) 857-5750

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The Lloyd S. Berkett Insurance Agency, Inc. was founded in 1946 by Lloyd S. Berkett. Regarded as one of Southern California’s most successful, well-respected and innovative independent insurance agencies, ... Read More

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