This is a nice piece from III.org (The Insurance Information Institute) about what determines the price of your auto insurance policy.
Many factors can affect your premium. Not all companies use all of these factors, and some might use factors not listed here. Your premium may depend on:
1. Your Driving Record
The better your record, the lower your premium. If you have had accidents or serious traffic violations, it is likely you will pay more than if you have a clean driving record. You may also pay more if you are a new driver and have not been insured for a number of years.
2. How much you use your car
The more miles you drive, the more chance for accidents. If you drive your car for work, or drive it a long distance to work, you will pay more. If you drive only occasionally — what some companies call “pleasure use” – you will pay less.
3. Where your car is parked and where you live
Where you live and where the car is parked can affect the cost of your insurance. Generally, due to higher rates of vandalism, theft and accidents, urban drivers pay a higher auto insurance price than those in small towns or rural areas. Some areas are also prone to more lawsuits and higher medical care and car repair costs.
4. Your age
In general, mature drivers have fewer accidents than less experienced drivers, particularly teenagers. So insurers generally charge more if teenagers or young people below age 25 drive your car.
5. The car you drive
Some cars cost more to insure than others. Variables include the likelihood of theft, the cost of car, the cost of repairs, and the overall safety record of the car. Engine sizes, even among the same makes and modesl, can also impact insurance premiums. Cars with higher quality safety equipment might qualify for premium discounts.
6. Your credit
In Pennsylvania but in not all states, credit-based insurance scoring is used to predict the likelihood of a person filing a claim and the likely cost of that claim. Credit-based insurance scores are based on information like payment history, bankruptcies, collections, outstanding debt and length of credit history. For example, regular, on-time credit card and mortgage payments affect a score positively, while late payments affect a score negatively.
7. The type and amount of coverage
In virtually every state, by law you must buy a minimum amount of liability insurance. Buying higher limits will cost more, but not proportionately more. So twice the minimum liability coverage will not double the premium. If you have a new or recent model of car, you likely will also buy comprehensive and collision coverage, which pays if you are responsible for damage to your car. Comprehensive and collision coverages are subject to deductibles; the higher the deductible, the lower your auto insurance premium.
Need to know more about your auto insurance rates? For more information on policies and coverage, please contact Gunn Mowery at 717-761-4600, or by e-mail at email@example.com.