Seven Factors That Affect Your Car Insurance Premium

Cutting costs is a necessity for many households, so you might find yourself tempted to get rid of some of your car insurance coverage to save money. Before you do so, make sure you fully understand how your car insurance premium in Tampa, FL is calculated. When you understand why insurance companies charge certain rates, you can make better choices—or work with an agent at Star Nsurance to find a better rate.

Here are the main factors that are likely to affect your car insurance premium:

  • What kind of car you have: Obviously, car insurance for a Lamborghini is going to be significantly more expensive than that for a Prius. Some cars simply cost more to insure for a variety of reasons, but if you have a car with anti-theft devices or anti-lock brakes, you might find that your insurance company will offer a discounted premium.
  • Your age, gender and marital status: Insurance companies look at the demographics when assessing risk. Certain groups (such as young single men) are statistically more likely to get into an accident, so rates are adjusted accordingly. Sometimes there are specific age thresholds to meet before the premium will go down.
  • Where you live and park your car: If you park your car on the street in a big city, you’re more likely to have your car stolen or damaged, as opposed to a suburban driver who parks in their garage.
  • Your driving record: New drivers and people with multiple accidents on their record will pay higher premiums—the insurance company sees them as statistically bigger risks to insure, so they raise the premiums to make up for the likelihood that they’ll need to pay out.
  • How often you drive: Your car insurance rate in Tampa, FL also depends on how much you drive in any given period. If you only drive once a week, you can expect to pay much less than someone who commutes an hour to work every day and often takes road trips. Again, it’s all about risk—if you spend less time driving, you’re far less likely to get into an accident.
  • The type of coverage you have: Of course, the type of car insurance plan you have will also affect the premiums. Most states at least require liability insurance as the bare minimum, but your plan can also include collision coverage, uninsured or underinsured motorist coverage, medical injury insurance or comprehensive coverage. There are plenty of add-on services and coverages that you can include, but these will cause your rates to go up.
  • Your limits and deductibles: Finally, how high you set your limits and deductibles will either raise or lower your premium. The limit is the total amount your insurance company will pay out, and the deductible is the out-of-pocket costs you’ll pay before the insurance takes over.

For affordable car insurance in the Tampa area, reach out to the team at Star Nsurance today. We’d love to help you find the perfect plan for your needs.