How Insurance Companies Decide Auto Insurance Rates 

Insurers set premiums and have the power to determine which factors affect how much you pay for auto insurance. 

Your agent can help you get multiple quotes for auto insurance. Contact St. Andrews Insurance Agency in Panama City, Florida, today. 

How Are Insurance Rates Determined? 
Insurance companies use several factors to help determine property insurance rates. Your auto insurance may be based on the following information: 

• The type of coverage you choose — If you choose a liability-only policy, you may pay much less for car insurance. If you want coverage for potential damage to your car, or if you have a loan or lease on your vehicle, you’ll need comprehensive and collision coverage in addition to liability coverage. 
• The amount of coverage you choose — Purchasing more than the minimum amount of required liability coverage typically costs less than choosing higher liability limits.
• Your deductible — Choosing a higher deductible may help reduce our insurance premiums. Many people choose a $500 or $1,000 deductible, which is the portion of damage to your vehicle that you must cover before your insurance coverage kicks in.
• The make and model of the insured vehicle — Higher value vehicles cost more to repair, so the type of vehicle you drive, its age and value affect how much you’ll pay for full coverage auto insurance.
• Your age and driving experience — Younger and less experienced drivers are statistically more likely to cause accidents, and insurance companies offset this risk by increasing premiums for these drivers.
• Your driving record — If you have moving violations or at-fault accidents on your driving record, your insurer may offset the risk that you’ll make a claim by increasing your auto insurance premiums.
• Your ZIP code — Drivers who live in areas with busy roads and more insurance claims typically pay more for car insurance than those who live in rural areas. 

This list is not exhaustive. Your insurer can use any information about you, your policy and your vehicle to help determine your policy premiums. 

Contact Us 
Contact St. Andrews Insurance Agency today to learn more about which factors may affect your insurance premiums and get a quote.