Old Bay Insurance Agency Blog
A selection of varying factors influences the premium rates you'll pay for your auto insurance. You have your driving record from the type of coverage and where you park your vehicle. While not all insurance companies use the criteria, here's what usually affects your auto insurance premium rates.
About the Car
The cost of your vehicle is a significant factor in the rates of insuring it. Other considerations include the risk of theft, the cost of maintenance, the engine's size, and the car's overall safety record. Vehicles with safety equipment of high quality can qualify for premium discounts.
Auto insurance providers also produce vehicle safety ratings and offer incentives to auto customers who drive safer cars by collecting a large amount of data from consumer claims and analyzing industry safety reports. However, the reverse can apply to risky, flashy trips.
About the Driver
Usually, drivers involved in collisions need to pay more than those who have been crash-free for many years. Stay vigilant and keep your good driving habits going for a lower premium rate.
Specific credit details may be indicative of future insurance claims. To help determine the cost of car insurance, most insurance companies use credit history if applicable. It can have a positive effect on the cost of your auto insurance to retain good credit.
About the Insurance Company
How the insurance company operates its business also affects your premium rates. Of course, an insurance firm strives to be profitable. The bottom line of a company is a significant factor when it comes to your rates.
Many factors, including natural disasters, other business lines, and underwriting, influence profitability. Insurance companies offer different payment plans. Some offer discounts for yearly or semi-annual payments. If you make automatic payments, some insurance firms may also offer discounts.
Although premium rates can be unpredictable, there are many variables that insurance companies use to determine how much to charge you. Understanding the factors that affect your auto insurance premium rates will help you make vigilant choices about buying your cars and insurance coverage.
At Old Bay Insurance Agency, Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (410) 777-5390 or Click Here to request a free quote.