Factors That Influence Auto Insurance Rates

Drivers everywhere notice when annual auto insurance premiums rise.  Insurers use many factors to determine how much money must be collected from each risk class of drivers to cover claims and administrative expenses.  Increasing costs dictate the need to impose higher rates for the coming policy year.  The amount of an individual policyholder’s annual premium increase will be affected by specific factors.

  • Coverage limits and policy deductibles – Comprehensive, collision and liability insurance offer complete protection against loss.  The policyholder will pay more for these features.  Larger deductibles can reduce the monthly premium.
  • Make and model of insured vehicles – Expensive cars are more expensive to repair or replace.  Insurers gather statistics from previous years to determine the cost for each car.
  • Driving patterns – Cars that are driven often and for long distances face greater risk of loss.  Drivers can rarely change this category.
  • Location – Urban drivers face higher crime rates that include theft and vandalism.  Insurers charge higher rates for city dwellers.
  • Personal attributes – Drivers under the age of 25 experience more accidents.  Policyholders between the ages of 50 and 75 pay the lowest rates.

For all your insurance needs in Pleasant Hill, contact Lou Aggetta Insurance to get a quote, today!

Lou Aggetta Insurance, Inc.

2637 Pleasant Hill Rd
Pleasant Hill, CA 94523

(925) 945-6161 | Phone
(925) 256-7610 | Fax