Auto Insurance in Philadelphia: Determining Premium Costs

Are you trying to find affordable insuracne, but can’t seem to figure out how you’re getting quoted so much money? All the time, you hear advertisements for insurance companies claiming that they can save you hundreds of dollars each year just for switching providers. However, when you actually switch, it seems like you’re spending more than you’re saving. If this sounds like something that’s happened to you recently, having a better understanding of how your premium costs are determined could make a huge difference in how much you spend on your auto insurance this year.

Factors that Determine Your Premium

Age and Gender

Insurance companies charge you according to how high of a risk you are. Drivers who are young or elderly& pay a considerably higher amount than those who are in their thirties. If you have a new teen driver or an elderly driver in your home or on your policy, this could have increased your premium rate. It is also a proven fact that male drivers tend to pay higher insurance rates than females do. Why? Statistics prove that men are much more aggressive at driving than females are.

Your Vehicle

Insurance premiums are also determined based on the age of your vehicle, features it might have, as well as the condition of the car at the time. Cars that are older with fewer safety features (alarm systems, air bags, etc.) are going to pay more, whereas newer cars requiring fewer repairs are going to cost a bit less to insure.

Your Willingness to Pitch in

In the event an accident does take place, your insurance company is going to have to foot the bill on the costs. Your deductible is essentially how much you’re going to pay towards the damages. The less you’re willing to pay, the more your premium will be.

Your Driving Record and Experience

Your driving record and experience is equally as important. Someone who has no driving record and no experience is going to pay more than someone who has a decent driving record and several years of driving experience. However, someone with a number of traffic violations pays higher rates.

Now that you know which factors can determine how much you’re going to pay for Auto Insurance in Philadelphia, it might be worth talking with your insurace provider to figure out how you can decrease your premium each year.

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