What Will Your Auto Insurance Premium Cost?
When you are deciding on an auto insurance provider, you may be compelled to go with the lowest price. This isn’t always the best solution when you consider how auto insurance premiums are calculated as it related to providing you with the greatest protection based on your vehicle and any inherent risk factors.
Calculating an Auto Insurance Premium
The formulas used to derive an auto insurance premium employ a variety of factors and evaluate everything from demographic information and vehicle information to driving history. For instance, your gender, marital status, age, and where you live will all be used to determine your insurance premium, as will your vehicle safety features, personal driving record, credit score, age and size of your car or truck, and even your profession.
A Look at the Facts
The reasons these demographics impact your auto insurance premium can be seen in nationwide driving statistics. For instance, according for the Center for Disease Control and Prevention (CDC) report on Motor Vehicle Safety, in 2013 teens aged 15-19 made up 7% of the US population but accounted for 11% of motor vehicle injuries. According to the Insurance Institute of Highway Safety (IIHS), male drivers display riskier driving behaviors while spending more hours driving than women, ultimately accounting for males facing a likely higher insurance premium. Additionally, according to IIHS, when looking at vehicle size, mini car categories resulted in accident death rates almost twice that of larger vehicles. Also, the Federal Trade Commission released a study in 2007 that showed a direct correlation between how much a consumer costs an insurance company and their credit score. Just these few statistics highlight the many complex variables that come together to determine what your auto insurance premium will be.
Finding the Auto Coverage That’s Right for You
Take the confusion out of the auto insurance quote process by working with a licensed insurance professional who can fully explain to you the factors impacting your individual auto insurance quote and who can provide you with the knowledge to obtain maximum coverage at the best price.
Common Auto Insurance Coverage:
- Collision Insurance – Covers damage to your vehicle caused by a collision with another vehicle or with any other object, regardless of fault. Collision insurance does not cover bodily injury (BI) or property damage (PD) liability.Property Damage (PD) Insurance When you are at fault. Covers damage to another person’s property (vehicle or other object) caused by a collision with your vehicle.
- Bodily Injury (BI) Insurance – Pays for the injuries of others when you are at fault.
- Medical Payments Insurance – Provides for the payment of medical and similar expenses without regard for legal liability.
- Comprehensive Insurance – Covers damage or cost of repairs to your car caused by reason other than collision, such as fire, theft, windstorm, flood, or vandalism.
- Uninsured and Under-insured – Provides coverage for a policyholder involved in a collision with a driver who does not have liability insurance or who does not have sufficient liability limits to pay for damages.
- Endorsements/Riders – Covers special equipment such as wheels, tires, premium electronic not installed at the factory and reimbursement for towing and rental.
Call us at 714-258-2800 or 888-725-7776 to discuss your California auto insurance policy needs and to receive a free no obligation quote.