The amount a person pays for their car insurance premium is determined by a number of factors and in this blog post, we’re highlighting five of the most common. 

Your driving record and your insurance costs go hand-in-hand. 

If you have a good driving record, your car insurance premium will be lower than if you have a poor driving record. Your auto insurance premium will increase dramatically with any ticket or accident. 

These factors will affect your premium for three to five years.  

Another factor is driving experience. Youthful drivers and those who’ve never owned a vehicle will pay more for insurance.

Conversely, the likelihood of drivers with more experience making mistakes, receiving citations, and ultimately making claims is usually lower which leads to a decrease in insurance prices. 

Where you live is another significant factor in car insurance rates.

Think about it. 

Big cities tend to have crowded streets and higher crime rates which can lead to more accidents and claims as opposed to suburban or rural areas that are less densely populated and have lower crime rates. 

It’s important to note, however, car insurance is regulated at the state level which means it’s subject to the respective state’s regulations. 

For instance, drivers in both Florida and Pennsylvania (The two states we have offices) require drivers to have a minimum of personal injury protection (PIP) insurance and property damage liability (PD) auto insurance. 

More miles means more exposure to risk. 

That’s why insurers pay attention to how much the vehicle is used. 

A person with a long commute to and from work will likely pay more for car insurance than the person who uses their car from time-to-time to run errands. 

The make, model, and year of your vehicle are all contributing factors in the cost of your car insurance premium.

That’s because some cars are a lot less expensive to insure than others. 

For example, it will typically cost more to insure a luxury vehicle as it would a non-luxury vehicle. The price of the car and repairs play a major role in the price of auto insurance. 

Tip: Just as insurance premium rates can increase, there’s also ways to earn discounts as well including students receiving good grades, being accident free, having multiple insurance policies, and more. Check with your agent to see if you’re eligible for any applicable discounts. 

Contact us today if you’d like to learn more about our personal auto insurance options and how we can find the right policy for you.