One of the most common questions that our team at Insurance Service Center is asked is “how do insurance companies determine how much I will pay for personal auto insurance?” The truth is that there are several factors that insurance companies look at when figuring out the price of your car insurance coverage.

One of the main determining factors in personal auto insurance premiums is the number of drivers that will be on the policy and their ages. Obviously, more drivers means more chances that accidents can happen, but insurance companies also look at the age maturity of the drivers on the policy. If someone on your policy is under the age of 25, chances are you will pay more for personal auto insurance. More importantly though, personal auto insurance premiums are determined by the driving record of those wishing to be insured. Traffic violations and accidents noted on your driving record will most assuredly cause your personal auto insurance premiums to go up. Another factor that may decide your car insurance premiums is your credit score.

Insurance companies also look at the type of vehicle you are driving when determining car insurance premiums. Chances are that the more expensive your vehicle is or if it is manufactured overseas, the higher your insurance premiums will be. However, some companies will offer a discount on newer vehicles, and nearly all personal auto insurance companies will offer discounts for safety features, like airbags and anti-lock brakes. Another factor insurance companies will use is your location. Are you in an area that sees heavy traffic daily? Do you live in an area that sees quite a bit of car theft or vandalism? If so, you’re personal auto insurance may be a little bit higher.

For personal auto insurance companies, the deciding factor in determining premiums is all about liability. At Insurance Service Center, we specialize in finding the best personal auto insurance policy for our clients. If you are looking for great car insurance coverage, contact Insurance Service Center at one of our North Carolina locations in Fayetteville, Lumberton, Sanford, Apex, Lillington and Clinton.

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