How Auto Insurance Premiums Are Determined

We often get questions about auto insurance rates and how they are determined. How can someone, in seemingly similar situations, have higher or lower rates? When it comes to auto insurance, premiums are determined by multiple factors. They include:

  • What the vehicle is used for
  • How many miles you drive annually
  • Your age and sex
  • Where the car is located
  • The type and style of car
  • The age of the car
  • Safety and security features of the car
  • Replacement value of the vehicle
  • Your driving record
  • Driving records of those who drive the vehicle
  • Whether you have other policies (homeowners etc.) with the company

In other words, there are more factors that go into determining auto insurance premiums than you may realize. It is why it is a good reason to have your auto insurance reviewed occasionally. If you live in the Phoenix, Arizona area and would like an auto insurance quote, contact us at American Premier Insurance. We can help assure you are getting the discounts you deserved.