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There are many different components making up the premium for your auto insurance policy. Each insurance carrier has their own proprietary systems that calculate the price based on a variety of factors. There are, however, a few underlying factors that are mostly the same across the board.
1. Location:

Where you live is a big influence on the cost of your car insurance.  Obviously, the state where you are currently at is the biggest factor. It gets broken down each further though. 
For example, there will be some differences if you live in the suburbs vs. the city.  Even the city itself can be further broken down based on which area of the city has higher levels
of claims; said the neighborhood you live have a higher chance of your car being broken into or stolen vs. the next one.  This will cause the rates for your area to go up. 


2. Your Car Basics:
The size of your car matters. The age of your car matters.  The engine HP to weight ratio matters.  The safety features and anti theft devices matters.  The propensity of the model 
of your car being stolen or involved in an accident matters.  The ratings of the crash tests done on your car model matters.  What doesn't matter?
I like dark colored cars, luckily for me, the color of my car doesn't count. 

3. Deductibles: 

The higher your deductible, the lower your premium.  Easy enough? The trick is finding the balance of how much you want to pay out of pocket vs. the savings you can get from 
a higher deductible. Your insurance agent can help you answer that. Obviously, Linwood Forest is a great choice. :)
4. Mileage: 

How many miles you drive in a year makes a small difference.  It's simple.  The more you drive, the more chances someone has a chance to hit your car or vice versa. 

5. Discounts: 

Insurance companies offer discounts based on your current situations.  You should make sure you are getting all that you qualify for.  Here are a few examples: 

A. Claims Free 
B. New Customer 
C. Homeowners
D. Senior 
E. Driver Training
F. Package 
G. Long Term Customer

6. You: 

We now come to the most important and the major component of how much your auto insurance will cost you.  Who else but you?  Your age, marital status, and gender matters.
Some companies also factored in your job and education.   Although I know there are some people who might not like this, but how good (or bad) your credit is also a part of 
what most insurance companies use to come up with the premium.  So keeping good track of your finances not only helps you stay on budget, but save you money too! 
Yet another reason to keep an eye on it. 


This post is not meant to cover everything, but I think you should now have a good idea of what goes into the calculation of your insurance. 
If you ever have any questions, please contact Linwood Forest Insurance Group. 


													         “Your Insurance....Our Priority” 



-Dave Lin

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