When you purchase a car, whether you lease, finance, or pay cash, you are legally obligated to also purchase a car insurance plan. Each car you own must be included on a car insurance plan.

This means, the demand for car insurance is high and the industry is huge as every car owner needs it. That’s a lot of car insurance customers!

When shopping for car insurance, it is important to have some knowledge or work with a trusted independent agent so you don’t get lost in the process. Without the help of a trusted agent, like our team at link-Hellmuth, you could end up paying way too much or not have adequate coverage for your car insurance needs in Springfield, Ohio.

Our independent insurance agents will help you find the best coverage at the best price by helping you compare policies from deductibles, premiums, and overage policy coverage.

With that said, it is important to know what goes into calculating your premium.

What is a Premium?

A car insurance premium is a monthly payment you make in exchange for the insurance coverage. This payment is not included in the deductible and really equates to the overall cost of your car insurance coverage.

How is a Car Insurance Premium Calculated?

There are several factors that go into the calculation of your premium costs. The cost of your premium reflects how much of a risk it is to insure you. For this reason, premium costs vary by every individual. Let’s take a look at what could be affecting your premium costs.

Driving History

When calculating your insurance premium, any insurance company is going to take a look at your driving history, typically for the past three years. If you have a history of speeding tickets and various traffic violations, that will translate to a higher premium. If you have a clean driving record, your premium will be lower.

This is why it pays to be a safe driver. Next time you’re speeding, remember not only will you pay for your speeding ticket, but you could be paying an increased premium for the next three years, so slow down!

Type of coverage

There are different levels of insurance coverage for your car. Most commonly you will see either just liability or full coverage insurance. Liability will cover damage you do to others cars on the road and full coverage will also cover damage to your car.

Liability insurance is the base level of insurance required in most states. Full coverage will be a higher premium but will give you better coverage in the event of an accident.

Additional Factors

The reason premium rates can feel so abstract at times is the other factors car insurance companies look at. These factors will vary based on your personal situation and include your age, the type of car you drive, and where you live.
Insurance companies are all about weighing risks. They accumulate all your information to determine your level of risk, which will determine your premium rate.

When shopping for car insurance in Springfield, Ohio it’s important to work with a trusted agent who has experience in helping you save money on your monthly premium. Our agents at Link-Hellmuth are here to do just that!