What Makes Up Your Auto Insurance Premiums?

The average cost to insure a vehicle in the US is approximately $1,500 per year. Unfortunately, that average does not help you determine how much you will personally pay to insure your car. There are many variables to consider when understanding the cost of your auto insurance.

Let us briefly explain the 6 variables that affect your auto insurance premiums:

• Type of car: fast and expensive cars typically require higher insurance premiums as they are more likely to get in accidents and are more costly to repair

• Credit score: data shows that people with lower credit scores are more likely to file an insurance claim, which forces insurance companies to increase their premiums

• Number of accidents: people who have been involved in more accidents are more likely to be involved in future accidents and therefore will have to pay higher premiums

• Number of tickets: the more violations you have, the higher your premiums will be (however, different violations carry different weight)

• Type of cover: premiums will be different for policies with higher limits and lower deductibles, and vice-versa

• Demographics: age, sex, location, and other similar factors come into consideration when determining insurance premiums (for example, a young inexperienced driver will have a higher premium than a experienced driver with no accident/ticket history)

These 6 factors are the main determinants of how much your auto insurance premiums will be. While you cannot change some of these variables, it is important to keep them in mind so you can save on auto insurance!

You might ask yourself, " What can I do if my auto insurance premiums increase?" Find an independent insurance agent that you trust. If you go directly to a major provider, you will have access to only their products. An independent agent can provide you with over 25 auto insurance carriers, which will increase your odds of paying lower premiums!

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Let Nottingham Insurance be there for you when life happens. Call us at (877)(609)587-1600 or email us at info@nottins.com.