What affects the cost of my insurance?

Many people have wondered what factors affect the cost of insurance and why those cost can be so widespread for the same type of coverage.  These variables can be broken down into three main categories; items that you cannot change, items that you may be able to change, and items that you can control.

Items you normally can not change:

  • Legal Requirements. More requirements by law normally equal higher premiums.
  • Your Age: when insuring the person older normally cost more. Auto insurance younger equals higher and then senior age can also be higher.
  • Your gender: this one varies in some insurance one gender is lower while at same age in another insurance the other gender is lower.
  • Where you live or where the property is.


Items you may be able to change:

  • Deductibles, higher equals lower premiums. Compare deductible to premium changes. If property has a lien on it be sure of their requirements.
  • On Auto the sports car will cost more than the four door sedan. Consider what you are buying.
  • Condition of property being insured. Security systems and dead bolts often lower property insurance.
  • Insurance on a healthy person is less then on an unhealthy one.
  • On life, health and disability insurance using tobacco or being over weight normally equals higher premiums.
  • How you get the coverage, group plans for life, disability and medical insurance often cost less for the benefits provided.


Items you control:

  • Your driving record. Keep it clean and enjoy the lower cost.
  • Buying a high valve and high power vehicle equals higher price auto insurance.
  • The amount of coverage.
  • The deductible, higher deductible equals lower price.
  • The type of coverage you are buying. Better coverage cost more. But higher price does not always mean better coverage. It might mean high price company.
  • Being a smart consumer. If you don’t understand ask questions. Ask for options in the coverage and how that affects the price. Look at the options and decide if they provide coverage you need or not.

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