Believe it or not, we insurance agencies don’t look into a crystal ball or roll a series of dice in order to determine your auto insurance premium! Here at Nicholas Insurance, we want to help take some of the mystery out of the premium determination process and help you learn how you can do everything in your power to strive for obtaining the lowest premium possible — if that’s something that’s important to you. Of course, some factors such as age cannot be changed at will, but others are largely affected by choices you make.
Factor One: The Driver
Both a driver’s demographics and his or her driving record influence the auto insurance premium amount. Age and gender affect risk assessments, and less experienced drivers usually end up having to pay more than they will in just a few short years. A little more under your control is your driving record; the cleaner your driving record is, the lower your rate will be. Allstate® offers an all new Drivewise® app that allows you to earn rewards of up to a 20% discount on your insurance or cash back. Teen drivers can save by participating in the Allstate Safe Driving program.
Factor Two: The Vehicle
Did you know that the vehicle you drive will help determine your premium rates? Vehicles with security features like anti-theft devices and anti-lock brakes can help you qualify for special discounts. New cars also help you qualify for up to 30% off, if you are the vehicle’s first owner and it’s two years old or newer.
Factor Three: The Vehicle’s Use
Remember, we’re not pulling these numbers out of a hat; they reflect the risk factors associated with an insurer’s having to pay out. How much you drive definitely plays a part; you may want to take that into consideration if you live in an area with public transportation or you can arrange a car pool. Telecommuting can also work in your favor.
Where you live also affects your rates, as does where you park your car overnight; if you live in an area with little to no risk of theft or vandalism, you’ll probably pay less.
Factor Four: Coverage Choices
Most states require basic liability coverage, but we also recommend comprehensive coverage, uninsured/underinsured motorist coverage, collision coverage, and personal injury protection. In addition to the types of coverage, you can choose the limit of your coverage (the maximum amount your policy will pay out toward a loss that’s covered) as well as your deductible (the amount you pay before insurance helps pay a covered loss).
To find out exactly how making certain changes to your policy, your vehicle’s use, or your vehicle itself will affect your premium amount, be sure to talk with your Nicholas Insurance agent.
The Nicholas Insurance Agency, led by Greg Nicholas, is a family owned business serving the York county, Pennsylvania region. In the insurance business since 1981, Greg Nicholas helps families, businesses and individuals understand the value of different insurance products and make wise decisions when selecting the best insurance products for their specific situations.
Offering exclusively Allstate insurance products, the Nicholas Agency provides auto, homeowners, rental and landlord insurance as well as life & disability, recreational vehicle, motorcycle and personal liability insurance.
For more information, visit our two York, PA locations at Westgate Plaza or Northeast Shopping Center or call us at (717) 764-2024.
Image credits: Top © Edyta Pawlowska/Fotolia; 2nd © nacroba/Fotolia; 3rd © stokkete/Fotolia; 4th © Karelnoppe Photography/Fotolia; 5th © Sabphoto/Fotolia