There are things that affect your insurance premium. Are there cheaper companies than yours? Maybe. Companies do differ in how much they charge. There are also many other reasons why insurance premiums are different for each individual.
1. Have you had any at claims in the past three years?
How many claims your company has paid will affect your rate. Some companies will surcharge your policy if you are newly insured with them and have had an accident or claim within the first three years that they insure you. After that, you will have likely paid enough premium to balance the cost of the claim. The same companies who surcharge will often start give a discount for not having accidents after you have been with them for more than three years without an accident.
2. What are your deductibles?
You can choose from a variety of amounts for your physical damage on both home and auto insurance. The deductible is how much you will pay before the insurance company will pay the rest. With home insurance, you can choose anywhere from $250. to $5000. On your auto insurance you have two physical damage coverages; Collusion and comprehensive or other-than-collusion. You can choose a deductible for each of these with a range of anywhere from 0 to $1000 or more. The higher amount of deductible you choose, the lower your premium will be.
3. What is your insurance score?
Yes, insurance companies do use a financial score as a rating factor. They use the same companies as banks and financial companies do but ask for different information. The most important thing they want to know is if you pay your bills on time. Why should this be used to determine your premium? It is because insurance companies have found that people who are financially responsible are responsible in how they drive and take care of their property.
4. Have you had any vehicle code violations in the past three to five years?
Any history of these types of incidents will definitely affect your premium. Insurance companies have found that people who drive recklessly are more likely to have claims. While some companies will charge more if you have a history of violations, other companies will choose to not insure you.
If you have demonstrated responsibility by having no claims and vehicle violations for three to five years, and are paying your bills on time, you may get lower premiums by shopping companies. Companies offer a variety of different discounts to individuals whom they consider good risks. Get your information together and start calling!