Car insurance premiums can fluctuate wildly from insurer to insurer, person to person, and even from year to year. Whereas your neighbor might brag about saving hundreds of dollars by switching carriers, a quote from that same insurer might yield much higher rates for you. So what exactly goes into the cost of car insurance? More importantly, how do you know you are getting the coverage you need at a price that is fair and affordable? Continue reading to learn what goes into the cost of car insurance and how shopping with an independent agent can put more money back in your pocket.
Your Personal Risk Assessment
For insurance companies, the cost of your coverage is based on their perceived risk of insuring you. If you have certain qualities that are associated with a higher risk of future claims, you might pay more for coverage than someone with lower risk factors. Examples include:
- Recent history claims (even ‘small’ claims)
- Accidents or citations on your driving record
- Being a young driver
- Driving a high-value vehicle
- Driving a high-horse-powered vehicle
- Having a long commute
- Living in an area with excessive crime or high collision rates
- Having a poor credit history
While most insurance companies will consider the above factors in their risk calculations, not all are weighted equally. For example, one insurer might place greater emphasis on recent claims history while another is more concerned about a driver’s personal credit score. That is why insurance rates can vary so widely between carriers and individuals with similar risk factors.
Why Work with an Independent Agent?
Independent agents do not work for insurers, but instead for you. Here at Glass Insurance Center, we consider ourselves to be advocates in the quest to protect your income and assets against the unexpected. Our job is not only to find your high-quality coverage, but also to procure cost-saving discounts on your behalf.
We take a two-step approach to coverage: Quality first, then cost. Trimming coverage might save on premiums, but it ultimately puts you and your family at risk of a major financial loss. Instead of sacrificing the quality of your coverage, we look for ways to get the protection you need at a competitive and affordable price. For example, here in Lake Geneva, many year-round residents own more than just a car and a home. You might own multiple cars, as well as a boat, an RV, and maybe even a couple of ATVs. The more you have to insure, the better your savings can be when you work with an independent agent. Often, we can find tremendous insurance savings for clients who take out multiple lines of insurance with the same carrier.
If you are not working with an independent agent here at Glass Insurance Center for your coverage needs, give us a call right away. Our knowledgeable and experienced team will assess your risks, make recommendations for coverage, and find a car insurance policy that is just right for you.