How does the insurance company determine my premium?
Many drivers want to know, "How do insurance companies determine my premium for car insurance quotes?" Insurance companies use formulas based on personal data to determine rates. Drivers who ask, "How can I buy car insurance and determine my premium will stay low?" should follow safe driving practices and use discounts.
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Agent
UPDATED: Oct 14, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Oct 14, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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Are you wondering how insurance companies calculate your premium? Understanding the factors that determine your insurance costs is crucial in finding the best coverage at an affordable price.
We delve into the key topics surrounding the evaluation of premiums, such as your age, driving record, location, vehicle type, and more.
Discover the intricate details that insurers consider and gain insight into how you can potentially lower your premium. Take control of your insurance costs today by entering your zip code below, and let us help you compare rates from the top insurance providers in your area.
How do insurance companies calculate premiums?
If you were to enter a search for “how to calculate insurance premium formula” into your search engine, you would be met with a variety of results. Simply put, each insurance company has its own approach on how to calculate premium percentages.
Now, all insurance companies do use a combination of mathematical calculation and statistics in order to ascertain what a driver should pay for insurance, and there are common factors that feed into those calculations.
Most people are very familiar with their insurance agent, but not many drivers are aware of the existence of insurance underwriters or how these individuals affect their insurance rates.
While an insurance agent can help you navigate the ins and outs of making a claim or adjusting your policy, underwriters work directly with the company’s rate calculation system.
Underwriters evaluate the risk associated with each driver, and whenever you apply for a quote from a new insurance company, your personal information undergoes the underwriting process so your risk level can be assessed.
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What information do insurance companies need to calculate rates?
When drivers apply for a quote, an insurance company typically needs basic information before it can produce an accurate rate. If you want to know how to calculate premiums in general, insurance companies usually need to know:
- Your age
- When you got your license
- Your driver’s license number
- The make and model of your vehicle
- The age of your vehicle
- Your address
- If you had any recent claims
While this information, you can fill into a quote directly, insurance companies will also examine your motor vehicle report (MVR) to determine if you have any recent driving violations on your record. Answering a few key questions can get you quotes. But underwriters will request a complete application before they issue the policy.
Insurance companies will frequently run a soft check on your credit to discover your credit score. Some states have outlawed the practice of using your credit score to set insurance premiums. If you want to have a better idea of what you may pay for car insurance, just take a look at this chart to discover what rates are being offered by major insurance companies in your state:
Read more: North Carolina Car Insurance Discounts
Average Car Insurance Rates by State and Company
| State | Average by State | Allstate | American Family | Farmers | Geico | Liberty Mutual | Nationwide | Progressive | State Farm | Travelers | USAA |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Alabama | $3,566.96 | $3,311.52 | - | $4,185.80 | $2,866.60 | $4,005.48 | $2,662.66 | $4,450.52 | $4,798.15 | $3,697.80 | $2,124.09 |
| Alaska | $3,421.51 | $3,145.31 | $4,153.07 | - | $2,879.96 | $5,295.55 | - | $3,062.85 | $2,228.12 | - | $2,454.21 |
| Arizona | $3,770.97 | $4,904.10 | - | $5,000.08 | $2,264.71 | - | $3,496.08 | $3,577.50 | $4,756.25 | $3,084.74 | $3,084.29 |
| Arkansas | $4,124.98 | $5,150.03 | - | $4,257.87 | $3,484.63 | - | $3,861.79 | $5,312.09 | $2,789.03 | $5,973.33 | $2,171.06 |
| California | $3,688.93 | $4,532.96 | - | $4,998.78 | $2,885.65 | $3,034.42 | $4,653.19 | $2,849.67 | $4,202.28 | $3,349.54 | $2,693.87 |
| Colorado | $3,876.39 | $5,537.17 | $3,733.02 | $5,290.24 | $3,091.69 | $2,797.74 | $3,739.47 | $4,231.92 | $3,270.77 | - | $3,338.87 |
| Connecticut | $4,618.92 | $5,831.60 | - | - | $3,073.66 | $7,282.87 | $3,672.34 | $4,920.35 | $2,976.24 | $6,004.29 | $3,190.00 |
| Delaware | $5,986.32 | $6,316.06 | - | - | $3,727.29 | $18,360.02 | $4,330.21 | $4,181.83 | $4,466.85 | $4,182.36 | $2,325.98 |
| District of Columbia | $4,439.24 | $6,468.92 | - | - | $3,692.81 | - | $4,848.98 | $4,970.26 | $4,074.05 | - | $2,580.44 |
| Florida | $4,680.46 | $7,440.46 | - | - | $3,783.63 | $5,368.15 | $4,339.60 | $5,583.30 | $3,397.67 | - | $2,850.41 |
| Georgia | $4,966.83 | $4,210.70 | - | - | $2,977.20 | $10,053.44 | $6,484.90 | $4,499.22 | $3,384.88 | - | $3,157.46 |
| Hawaii | $2,555.64 | $2,173.49 | - | $4,763.82 | $3,358.86 | $3,189.55 | $2,551.83 | $2,177.93 | $1,040.28 | - | $1,189.35 |
| Idaho | $2,979.09 | $4,088.76 | $3,728.79 | $3,168.28 | $2,770.68 | $2,301.51 | $3,032.19 | - | $1,867.96 | $3,226.29 | $1,877.61 |
| Illinois | $3,305.48 | $5,204.41 | $3,815.31 | $4,605.20 | $2,779.16 | $2,277.65 | $2,711.81 | $3,536.65 | $2,344.88 | $2,499.76 | $2,770.21 |
| Indiana | $3,414.97 | $3,978.81 | $3,679.68 | $3,437.55 | $2,261.07 | $5,781.35 | - | $3,898.00 | $2,408.94 | $3,393.75 | $1,630.86 |
| Iowa | $2,981.28 | $2,965.86 | $3,021.81 | $2,435.72 | $2,296.16 | $4,415.28 | $2,735.44 | $2,395.50 | $2,224.51 | $5,429.38 | $1,852.57 |
| Kansas | $3,279.62 | $4,010.23 | $2,146.40 | $3,703.77 | $3,220.65 | $4,784.42 | $2,475.59 | $4,144.38 | $2,720.00 | $4,341.43 | $2,382.61 |
| Kentucky | $5,195.40 | $7,143.92 | - | - | $4,633.59 | $5,930.97 | $5,503.23 | $5,547.63 | $3,354.32 | $6,551.68 | $2,897.89 |
| Louisiana | $5,711.34 | $5,998.79 | - | - | $6,154.60 | - | - | $7,471.10 | $4,579.12 | - | $4,353.12 |
| Maine | $2,953.28 | $3,675.59 | - | $2,770.15 | $2,823.05 | $4,331.39 | - | $3,643.59 | $2,198.68 | $2,252.97 | $1,930.79 |
| Maryland | $4,582.70 | $5,233.17 | - | - | $3,832.63 | $9,297.55 | $2,915.69 | $4,094.86 | $3,960.87 | - | $2,744.14 |
| Massachusetts | $2,678.85 | $2,708.53 | - | - | $1,510.17 | $4,339.35 | - | $3,835.11 | $1,361.86 | $3,537.94 | $1,458.99 |
| Median | $3,660.89 | $4,532.96 | $3,698.77 | $3,907.99 | $3,073.66 | $5,295.55 | $3,187.20 | $3,935.36 | $2,731.48 | $3,729.32 | $2,489.49 |
| Michigan | $10,498.64 | $22,902.59 | - | $8,503.60 | $6,430.11 | $20,000.04 | $6,327.38 | $5,364.55 | $12,565.52 | $8,773.97 | $3,620.00 |
| Minnesota | $4,403.25 | $4,532.01 | $3,521.29 | $3,137.45 | $3,498.54 | $13,563.61 | $2,926.49 | - | $2,066.99 | - | $2,861.60 |
| Mississippi | $3,664.57 | $4,942.11 | - | - | $4,087.21 | $4,455.94 | $2,756.53 | $4,308.85 | $2,980.48 | $3,729.32 | $2,056.13 |
| Missouri | $3,328.93 | $4,096.15 | $3,286.90 | $4,312.19 | $2,885.33 | $4,518.67 | $2,265.35 | $3,419.14 | $2,692.91 | - | $2,525.78 |
| Montana | $3,220.84 | $4,672.10 | - | $3,907.55 | $3,602.35 | $1,326.11 | $3,478.26 | $4,330.76 | $2,417.74 | - | $2,031.89 |
| Nebraska | $3,283.68 | $3,198.83 | $2,215.13 | $3,997.29 | $3,837.49 | $6,241.52 | $2,603.94 | $3,758.01 | $2,438.71 | - | $2,330.78 |
| Nevada | $4,861.70 | $5,371.62 | $5,441.18 | $5,595.56 | $3,662.09 | $6,201.55 | $3,477.14 | $4,062.57 | $5,796.34 | $5,360.41 | $3,069.07 |
| New Hampshire | $3,151.77 | $2,725.01 | - | - | $1,615.02 | $8,444.41 | $2,491.10 | $2,694.45 | $2,185.46 | - | $1,906.96 |
| New Jersey | $5,515.21 | $5,713.58 | - | $7,617.00 | $2,754.94 | $6,766.62 | - | $3,972.72 | $7,527.16 | $4,254.49 | - |
| New Mexico | $3,463.64 | $4,200.65 | - | $4,315.53 | $4,458.30 | - | $3,514.38 | $3,119.18 | $2,340.66 | - | $2,296.77 |
| New York | $4,289.88 | $4,740.97 | - | - | $2,428.24 | $6,540.73 | $4,012.93 | $3,771.15 | $4,484.58 | $4,578.79 | $3,761.69 |
| North Carolina | $3,393.11 | $7,190.43 | - | - | $2,936.69 | $2,182.71 | $2,848.03 | $2,382.61 | $3,078.65 | $3,132.66 | - |
| North Dakota | $4,165.84 | $4,669.31 | $3,812.40 | $3,092.49 | $2,668.24 | $12,852.83 | $2,560.35 | $3,623.06 | $2,560.53 | - | $2,006.80 |
| Ohio | $2,709.71 | $3,197.22 | $1,515.17 | $3,423.01 | $1,867.19 | $4,429.74 | $3,300.89 | $3,436.96 | $2,507.88 | $3,135.16 | $1,478.46 |
| Oklahoma | $4,142.33 | $3,718.62 | - | $4,142.40 | $3,437.34 | $6,874.62 | - | $4,832.35 | $2,816.80 | - | $3,174.15 |
| Oregon | $3,467.77 | $4,765.95 | $3,527.28 | $3,753.52 | $3,220.12 | $4,334.55 | $3,176.83 | $3,629.13 | $2,731.48 | $2,892.19 | $2,587.15 |
| Pennsylvania | $4,034.50 | $3,984.12 | - | - | $2,605.22 | $6,055.20 | $2,800.37 | $4,451.00 | $2,744.23 | $7,842.47 | $1,793.37 |
| Rhode Island | $5,003.36 | $4,959.45 | - | - | $5,602.63 | $6,184.12 | $4,409.63 | $5,231.09 | $2,406.51 | $6,909.45 | $4,323.98 |
| South Carolina | $3,781.14 | $3,903.43 | - | $4,691.85 | $3,178.01 | - | $3,625.49 | $4,573.08 | $3,071.34 | - | $3,424.77 |
| South Dakota | $3,982.27 | $4,723.72 | $4,047.47 | $3,768.80 | $2,940.29 | $7,515.99 | $2,737.66 | $3,752.81 | $2,306.23 | - | - |
| Tennessee | $3,660.89 | $4,828.85 | - | $3,430.07 | $3,283.42 | $6,206.69 | $3,424.96 | $3,656.91 | $2,639.30 | $2,738.52 | $2,739.28 |
| Texas | $4,043.28 | $5,485.44 | $4,848.72 | - | $3,263.28 | - | $3,867.55 | $4,664.69 | $2,879.94 | - | $2,487.89 |
| Utah | $3,611.89 | $3,566.42 | $3,698.77 | $3,907.99 | $2,965.57 | $4,327.76 | $2,986.57 | $3,830.10 | $4,645.83 | - | $2,491.10 |
| Vermont | $3,234.13 | $3,190.38 | - | - | $2,195.71 | $3,621.08 | $2,128.21 | $5,217.14 | $4,382.84 | - | $1,903.55 |
| Virginia | $2,357.87 | $3,386.80 | - | - | $2,061.53 | - | $2,073.00 | $2,498.58 | $2,268.95 | - | $1,858.38 |
| Washington | $3,059.32 | $3,540.52 | $3,713.02 | $2,962.00 | $2,568.65 | $3,994.73 | $2,129.84 | $3,209.52 | $2,499.78 | - | $2,262.16 |
| West Virginia | $2,595.36 | $3,820.68 | - | - | $2,120.80 | $2,924.39 | - | - | $2,126.32 | - | $1,984.62 |
| Wisconsin | $3,606.06 | $4,854.41 | $1,513.27 | $3,777.49 | $3,926.20 | $6,758.85 | $5,224.99 | $3,128.91 | $2,387.53 | - | $2,975.74 |
| Wyoming | $3,200.08 | $4,373.93 | - | $3,069.35 | $3,496.56 | $1,989.36 | $3,187.20 | $4,401.17 | $2,303.55 | - | $2,779.53 |
Read more: Delaware Car Insurance Discounts
Due to the intensity that insurance companies use to try and make each policy reflective of an individual driver, the car insurance for marketing and advertising professionals could be the same or even more expensive than the insurance for drivers who work traditional blue-collared jobs.
Read more: Best Car Insurance in Your State
How can drivers obtain cheap insurance?
After learning all this, you may now be wondering, “What can I do to determine my premium makes affordable car insurance attainable?” Luckily, there is quite a bit that you can do to take charge of your insurance rates.
Practicing safe driving habits is the best way to keep your rates low, but if you have a low credit score, you can work on improving that as well. Not only will that help you get your finances in order, but you’ll be able to score cheaper rates on your insurance too.
If you’re still wondering, “How can I determine my premium or car insurance rates stay low?” you can rest easy. Most insurance companies offer a plethora of discounts to their drivers.
Whenever you think your rates are getting too high, examine this list of discounts by top insurance companies:
Car Insurance Discounts by Company
| Discount Name | Allstate | American Family | Farmers | Geico | Liberty Mutual | Nationwide | Progressive | State Farm | Travelers | USAA |
|---|---|---|---|---|---|---|---|---|---|---|
| Adaptive Cruise Control | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Adaptive Headlights | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Anti-lock Brakes | 10% | ✓ | ✓ | 5% | 5% | 5% | ✓ | 5% | ||
| Anti-Theft | 10% | ✓ | 23% | 20% | 25% | ✓ | 15% | |||
| Claim Free | 35% | ✓ | ✓ | 26% | ✓ | 10% | ✓ | 15% | 23% | 12% |
| Continuous Coverage | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 15% | ✓ | ||
| Daytime Running Lights | 2% | ✓ | 3% | 5% | 5% | ✓ | ✓ | |||
| Defensive Driver | 10% | 10% | ✓ | ✓ | 10% | 5% | 10% | 5% | 10% | 3% |
| Distant Student | 35% | ✓ | ✓ | ✓ | ✓ | 10% | ✓ | 7% | ||
| Driver's Ed | 10% | ✓ | ✓ | ✓ | 10% | ✓ | 10% | 15% | 8% | 3% |
| Driving Device/App | 20% | 40% | ✓ | ✓ | 30% | 40% | 20% | 50% | 30% | 5% |
| Early Signing | 10% | ✓ | ✓ | ✓ | ✓ | 8% | ✓ | ✓ | 10% | 12% |
| Electronic Stability Control | 2% | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | |
| Emergency Deployment | ✓ | ✓ | ✓ | 25% | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Engaged Couple | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Family Legacy | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 10% |
| Family Plan | ✓ | ✓ | ✓ | ✓ | ✓ | 25% | ✓ | ✓ | ✓ | ✓ |
| Farm Vehicle | 10% | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||
| Fast 5 | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Federal Employee | ✓ | ✓ | 12% | 10% | ✓ | ✓ | ✓ | ✓ | ||
| Forward Collision Warning | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | |
| Full Payment | 10% | ✓ | ✓ | $50 | ✓ | ✓ | ✓ | 8% | ✓ | |
| Further Education | ✓ | ✓ | 10% | 15% | ✓ | ✓ | ||||
| Garaging/Storing | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 90% | ||
| Good Credit | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||||
| Good Student | 20% | ✓ | 15% | 23% | 10% | ✓ | 25% | 8% | 3% | |
| Green Vehicle | 10% | ✓ | 5% | ✓ | 10% | ✓ | ✓ | ✓ | 10% | ✓ |
| Homeowner | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | 3% | 5% | ✓ | |
| Lane Departure Warning | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Life Insurance | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Low Mileage | ✓ | ✓ | ✓ | 30% | ||||||
| Loyalty | ✓ | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | |
| Married | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||||
| Membership/Group | ✓ | ✓ | ✓ | 10% | 7% | ✓ | ✓ | |||
| Military | ✓ | ✓ | 15% | 4% | ✓ | ✓ | ||||
| Military Garaging | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 15% |
| Multiple Drivers | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Multiple Policies | 10% | 29% | ✓ | 10% | 20% | 10% | 12% | 17% | 13% | |
| Multiple Vehicles | ✓ | ✓ | 25% | 10% | 20% | 10% | 20% | 8% | ||
| New Address | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| New Customer/New Plan | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
| New Graduate | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| New Vehicle | 30% | ✓ | ✓ | 15% | ✓ | 40% | 10% | 12% | ||
| Newly Licensed | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Newlyweds | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Non-Smoker/Non-Drinker | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Occasional Operator | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Occupation | ✓ | 10% | 15% | ✓ | ✓ | ✓ | ||||
| On-Time Payments | 5% | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 15% | ✓ | |
| Online Shopper | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 7% | ✓ | ✓ | ✓ |
| Paperless Documents | 10% | ✓ | ✓ | ✓ | 5% | $50 | ✓ | ✓ | ✓ | |
| Paperless/Auto Billing | 5% | ✓ | ✓ | ✓ | $30 | ✓ | $20 | 3% | 3% | |
| Passive Restraint | 30% | 30% | 40% | 20% | ✓ | 40% | ||||
| Recent Retirees | ✓ | ✓ | ✓ | ✓ | 4% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Renter | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Roadside Assistance | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Safe Driver | 45% | ✓ | 15% | ✓ | 35% | 31% | 15% | 23% | 12% | |
| Seat Belt Use | ✓ | ✓ | ✓ | 15% | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Senior Driver | 10% | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||
| Stable Residence | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Students & Alumni | ✓ | ✓ | ✓ | 10% | 7% | ✓ | ✓ | ✓ | ||
| Switching Provider | ✓ | ✓ | 10% | ✓ | ✓ | ✓ | ✓ | |||
| Utility Vehicle | 15% | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||
| Vehicle Recovery | 10% | ✓ | ✓ | 15% | 35% | 25% | ✓ | 5% | ||
| VIN Etching | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | |||
| Volunteer | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Young Driver | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | $75 |
Using this list during your next policy renewal will help you secure great rates all year long.
Determining Car Insurance Premiums: The Bottom Line
Car insurance companies calculate rates during the underwriting process.
While each company uses its own set of statistics and variables to determine a driver’s risk level, nearly every insurance company will need drivers to provide personal information like their driver’s license number and address in order to provide an accurate rate.
Now, how can I buy car insurance and determine my premium will stay low? The answer is simple. Follow the rules of the road to avoid causing an accident and take advantage of the discounts that your insurance has available.
If you’ve ever wondered, “How do insurance companies determine my premium?” enter your ZIP code to compare free quotes from companies in your city today.
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Frequently Asked Questions
How does the insurance company determine my premium?
Insurance companies use a variety of factors to determine your premium, including your age, gender, driving record, location, type of car, and credit score.
What is an insurance score, and how does it affect my premium?
An insurance score is a numerical score based on your credit history and other factors, such as your payment history and length of credit history. Insurance companies use this score to help determine your premium. A higher score can result in a lower premium, while a lower score can result in a higher premium.
What is the difference between a deductible and a premium?
A premium is the amount you pay each month or year for your insurance coverage. A deductible is the amount you pay out of pocket before your insurance coverage kicks in.
How can I lower my premium?
You can lower your premium by taking steps to reduce your risk, such as maintaining a good driving record, driving a safe car, and living in a safe neighborhood. You can also raise your deductible or reduce your coverage amounts to lower your premium.
Can my premium change over time?
Yes, your premium can change over time based on changes to your risk factors, such as a change in your driving record or location.
How often should I review my insurance policy?
You should review your insurance policy at least once a year to ensure that you have the coverage you need and that you’re getting the best value for your premium.
Can I negotiate my premium with my insurance company?
You can try to negotiate your premium with your insurance company, but it’s not always possible. It’s important to compare quotes from multiple providers to ensure that you’re getting the best rate for your coverage.
Why do different insurance companies charge different premiums for the same coverage?
Insurance companies use different formulas and factors to determine premiums, which can result in different rates for the same coverage. It’s important to compare quotes from multiple providers to ensure that you’re getting the best value for your coverage.
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Agent
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