What Affects Auto Insurance Premiums?

April 29, 2019 | By:Neilson Marketing Services
What Affects Auto Insurance Premiums?

It’s no secret that drivers are always looking for new ways to save on their insurance premiums. While many fixed factors are used to determine how much you’ll pay for auto insurance, there are also a few things that you can do to lower your overall insurance costs. At Allegiant Insurance Services, we want to help make sure that each of our policyholders has invested in comprehensive coverage at an affordable price. Keep reading to learn more about how auto insurance premiums are determined and what you can do to save more on your coverage, without sacrificing any protection.

Which Factors Affect the Cost of Auto Insurance Premiums?

Car insurance providers use a variety of information on your vehicle, your personal driving history and even your location to help determine how much you’ll pay for coverage. Some of these factors are fixed and can’t be changed by you, but others are totally in your control.

Fixed Factors

  • The year, make and model of your vehicle are fixed factors that can’t be helped unless you purchase a different car. The year of your care does influence your insurance costs and, in some cases, upgrading to a newer model can save you a few bucks. Additionally, the company that manufactures your vehicle and the different model types can affect your overall insurance costs.
  • Safety features like airbags, anti-lock brakes, automatic seat belts, and daytime running lights can all help to lower your insurance premium.
  • Your age is also a significant indicator of how much you’ll end up paying for auto insurance. All insurance companies follow their own criteria regarding driver age, but if you’re under the age of 25, you can expect to pay more for coverage.
  • Where you live also affects the total price of your auto insurance. Living in an area that has a high claims ration can mean that you’ll pay more for the same coverage as your friend across town with a similar driving record and vehicle.

Flexible Factors

  • Your driving record has a pretty significant effect on how much you pay for car insurance coverage. So the better your driving history, the lower your rates will be.
  • Staying insured without any gaps in your record is also beneficial for your overall insurance costs. Maintaining coverage shows that you are safe, reliable and follow state laws regarding car insurance requirements.
  • Some insurance providers will offer discounts for policyholders who decide to bundle multiple insurance policies together. Bundling not only brings them more business but it’s useful to have all of your needs managed by the same provider and agent.
  • Being financially stable also looks good when determining your insurance premiums. If you have a good credit score and a solid history of paying off debts, you are much lower of a risk than someone with a history of financial issues.  

About Allegiant Insurance Services

At Allegiant Insurance Services, we handle all kinds of personal and business insurance needs. We provide our clients with highly personalized service to design responsible, tailored, and cost-effective insurance strategies for each individual situation. Give us a call today at (858) 771-2000 to discuss how we can serve you.

Get A Quote

Leading provider of Business Insurance, Employee Benefits & Personal Insurance.

First Name

Last Name


Phone Number

Email *

Interested In

*All fields are required.

For any questions, please call (858)771-2000, Every day from 8 am to 10 pm.