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Factors that affect your auto insurance premium in West Palm Beach , Florida

Insurance companies use a variety of factors to determine a policyholder's likelihood of experiencing an accident or loss. The cost of auto insurance for different drivers varies, as the level of risk for the insurance company varies. Not all companies consider the same factors. Some companies attach more significance to certain factors than others. Here are the main factors that affect your premiums.
 

TYPE OF VEHICLE, INCLUDING MODEL, YEAR AND VALUE
Expensive or high-performance vehicles cost more to repair or replace. Such vehicles may also be inviting targets for thieves or vandals. Insurers will usually charge a higher premium for coverage of these vehicles.
 

DRIVING HISTORY, INCLUDING PAST ACCIDENTS AND VIOLATIONS
Insurance companies consider drivers who have had an accident or received convictions for driving violations as high risks. Companies usually charge such drivers higher rates. Drivers who cannot get auto insurance through ordinary methods may obtain coverage through the Florida Automobile Joint Underwriting Association (FAJUA), a risk pool. All insurance companies authorized to sell auto coverage in Florida contribute to the FAJUA. For more information, call your insurance agent.
 

VEHICLE USAGE
The distance you live from your workplace or school may affect the cost of your insurance because it determines your daily exposure to risk. Increasing or decreasing the number of miles driven each year can cause your premiums to increase or decrease. Also, changing vehicle usage (i.e., from personal to commercial) can affect the amount you must pay for coverage.
 

TERRITORY
Insurers consider vehicle and population density, road conditions, repair rates, medical and hospital costs, and the number of accidents in a particular area. This is why, for example, urban drivers may pay higher premiums than rural drivers.
 

GENDER
Statistics show that males suffer more than twice as many fatal accidents as females. Insurance companies typically charge higher premiums for males, especially those younger than 25.
 

AGE
Statistically, Florida drivers younger than 25 or older than 65 make up a larger share of people involved in accidents, and this is factored into the decision to charge higher premiums.
 

CREDIT HISTORY
Insurance companies are permitted to use credit history as one of the factors that determine risk, and therefore premium cost.
 

POLICY CHANGES
Changes to your policy can also affect yourrates. Such changes include:
 
  • modifying your coverage
  • changing your deductible
  • adding or removing a vehicle from your policy
  • replacing an older vehicle with a newer one
  • adding a new driver and
  • moving to a new area (either more or less congested).
 

DESIRABLE AUTOMOBILE
When shopping for an automobile, keep in mind that insurance companies usually charge higher premiums for autos that cost more to repair or offer less passenger protection from accidents. Companies may also charge more for vehicles that tend to cause more damage when involved in accidents. For example, insurers may charge higher premiums for certain sport utility vehicles (SUVs).
 

YOUNGER DRIVER
It usually costs parents less to insure a teen-ager who occasionally drives the family automobile on their policy rather than buy a separate policy. If the teen-ager is the primary driver of the vehicle, the insurance cost will increase. However, a teen-ager who obtains a title in his or her own name may have to buy insurance under a separate policy. A young driver might qualify for reduced rates if he or she completes a driver's education course and achieves a certain grade point average in school.
Insurance companies give discounts that may not apply to the cost of the entire policy, but only to the cost of a portion of the coverage. Each type of coverage should be listed as a separate item on your billing statement.
 

MATURE DRIVER
Drivers 55 or older may qualify for a discount by successfully completing an accident prevention course approved by the Department of Highway Safety and Motor Vehicles. To qualify, you must keep your driving record free of accidents and violations after taking the course. For more information, contact the AARP at 1-888-687-2277, or the National Safety Council at (800) 621-7615.
 

RETIREE
If you have retired or otherwise do not earn wages, you may consider reducing your premium by excluding coverage for wage loss from your PIP insurance. You should take into account how this step will affect other family members living with you. Check with your insurance company or agent for more information.
 

DEDUCTIBLE
You may choose to increase your deductible in order to reduce your premium, but remember that you must pay it each time you submit a claim. Carefully consider such factors as how much of a discount you will receive for a given deductible and how much you can afford to pay for each claim.
Remember: It pays to shop around before buying insurance, since prices can differ among companies. In addition to cost, you should also carefully consider other factors such as service and dependability. A company charging a low premium may not prove to be such a good deal if you cannot get your claims paid in a timely manner or receive help when needed.
 

GOOD DRIVER
Many companies offer discounts to policyholders with driving records free of accidents and violations for an extended period of time.
 

OLDER VEHICLE
You may choose to drop collision and/ or comprehensive coverage on older vehicles because of their decreased value, unless a lien holder, such as a bank, requires it.
 

RESTRAINT SYSTEMS AND ANTI-THEFT DEVICES
Companies may offer discounts for certain equipment such as anti-lock brakes, air bags, anti-theft devices or vehicle-recovery systems.
 

NONDRINKER AND NONSMOKER
A few companies offer discounts for drivers who refrain from drinking alcohol or smoking tobacco products
 

CHANGING CARS
If you change cars, review all your vehicle components and safety devices with your agent to be sure you are getting all the discounts you qualify for.
 

INFLATION
Insurance companies raise premiums when other costs increase, such as the price of auto repairs, medical services, etc.