How much does auto insurance cost?

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The amount you will pay to insure your vehicle will vary depending on several different factors:

  1. What you drive. You will likely pay more to insure a sports car than an older model minivan. The vehicle's make, model, weight, and age will all factor into your insurance rate.
  2. Your age. Middle-aged drivers tend to have the best insurance rates, seniors pay a bit more, and teens are the most expensive age group to insure. Your marital status also has an effect on your premiums.
  3. Where you live. Those who live in urban areas tend to pay more for their insurance – more vehicles means greater chances of getting into an accident – while people in rural areas enjoy lower rates.
  4. Use of the vehicle. Do you use your car for work? How far do you drive to work? The more your car is driven, the more you’ll pay to insure it.
  5. Number of vehicles and drivers in the household. The higher the number, the higher your rates.
  6. Your claims history. If you have a long history of filing claims, your insurance company will charge more to insure you. Why? In their eyes, you are a proven risk and it’s likely you’ll file a claim while you are insured with them. A good rule of thumb is to avoid filing smaller claims if you can afford to pay for them yourself. This will help you keep a clean claims record.
  7. Your driving record. Your past driving behavior is a good indicator of your future. Points against your license for traffic tickets, auto accidents, and other incidents add up to a higher premium.
  8. Insurance score. Studies show that your insurance score is a good predictor of your likelihood of having future insurance losses. Learn more about insurance scores here.
  9. Coverages. The more coverages you have on your policy, the more you’ll pay.

With so many factors affecting the cost of insurance, it may seem like you have no control over what you pay. However, there are several things you can do to help control and even reduce your insurance premium.

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  • Increase your deductible. Some companies provide significant cost savings on your premium if you are willing to take a higher deductible.
  • Package your home and auto policies. It is usually much easier and economical to place all your policies with one carrier. Most carriers offer significant discounts for bundling coverages.
  • Take driver education courses. In many states, discounts are often given to people who complete vehicle safety or accident prevention courses.
  • Get good grades. If your teen driver does well in school, you could save money on your insurance.
  • Protect your car. Cars with antilock brakes, passive restraints, alarm systems, and air bags usually receive a reduced premium.
  • Customer loyalty. How long have you been insured with the same company? Most companies offer some form of loyalty discount.
  • Pay your annual premium in advance. People who choose to pay their auto insurance premium in advance are often entitled to extra savings.

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The policy coverages described above are in the most general terms and are subject to the actual policy exclusions and conditions. For specific coverage details and policy exclusions, refer to the policy itself or contact a Central Agent.