Auto insurance shopping advice often focuses on finding the cheapest price available. But what trade offs are you making to achieve this goal? Could finding the cheapest auto insurance leave you with unintended coverage gaps or potential poor customer service if you do have a claim? Having a base understanding of how insurance companies calculate you price may help you get the best price for the coverage and level of service you want.
How do insurance companies calculate your auto insurance cost?
Insurance companies use many different variables when calculating your auto insurance premium—some pricing variables are within your control and some are not.
1. Pricing elements you probably should not change:
2. Pricing elements you do control:
Insurance companies offer a variety of discounts as well such as paid-in-full, good student or accident-free discounts. Your independent agent can help you find the right coverages, limits, and any discounts to meet your needs.