How Is My Auto Insurance Premium Calculated?
Posted on: 11 February 2014
The average cost to insure a car in the United States is about $800. How do you compare, and why do you pay more or less for auto insurance in Merrillville IN? Multiple factors go into determining your insurance premium. The most important, and most logical, factor is your driving record. If you have traffic violations or accidents on your record, you'll pay more, period. You'll also pay more if you are a new driver, even if you are out of your teens, because you don't have an established safety record. Another piece of the premium puzzle is how often you drive your vehicle. If you have a long commute, or are on the road for more time than the average driver, you'll pay more. Don't drive much? You'll pay a lot less. Finally, your location makes a big difference in how much you pay. Insurance companies take into account the crime levels and accident rates in your area. City dwellers will pay more than country residents because of the greater risk of accidents. Then, there are lesser factors that go into calculating the cost of your premium: your age, your gender, your credit rating (which shows your responsibility), what type of car you drive and what type of coverage you want. Higher deductibles and collision-only insurance will cost less than full coverage. Share