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What Determines the Cost of Your Auto Insurance?

How the cost of your auto insurance policy is determined

If you own a vehicle, you should own an auto insurance policy. But have you ever wondered how the cost of that policy is determined? Several different factors go into calculating your auto insurance premium, and understanding them can help you make smarter decisions when it comes to your coverage.

While not all insurance companies use the exact same criteria, Platt Insurance can help you understand the common elements that affect the bottom line of your auto policy.

One of the biggest factors is your driving record. The better your record, the lower your premiums. If you’ve had accidents, speeding tickets, or other serious violations, insurers will likely consider you a higher risk—which translates to higher rates.

How much and how far you drive also plays a role. The more miles you put on your car each year, the greater your chances of being involved in an accident. Even where you park your vehicle is considered—parking in a secure garage typically poses less risk than parking on a public street.

Additional factors that may influence your auto insurance costs include:

  • Your age and experience – Younger, less experienced drivers are generally more expensive to insure.
  • The make and model of your vehicle – Some cars are more expensive to repair or more likely to be stolen, which can drive up costs.
  • The coverage limits and deductibles you choose – Higher limits and lower deductibles offer more protection but usually come at a higher price.

It’s also important to note that industry-wide rate increases can impact your premium—even if your personal driving history and habits haven’t changed. These increases are often due to rising repair costs, increased accident claims, or changes in state regulations.

Because so many variables affect your rate, and because they can vary by region or even ZIP code, it’s a smart move to work with a local, independent insurance agency like Platt Insurance. We can compare multiple carriers to help you find the best combination of coverage and cost.


To get the best idea of the cost you will pay for auto insurance, contact Platt Insurance at (330 856-6244) or click here to get your free auto insurance quote!


Source: https://www.iii.org/article/what-determines-price-my-auto-insurance-policy

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