Premiums are based on a number of factors, some of which are in your control, and some are out of your control. Let’s briefly look at factors that are out of your control.
- The profitability of the insurance company.
- Major losses, such as earthquakes, storms, and wildfires.
- State and federal regulations that oversee the insurance industry.
- The passing of new laws.
- Competition among insurance companies.
- Other financial indicators, such as the stock market.
What You Can Control
Use an independent to help you market your insurance. Independent agents have access to many good insurance companies and can get you the best possible combination of coverage, price, and service. An agent can compare prices from dozens of insurers for you.
The kind of car you drive is one of the biggest single factors when it comes to your auto insurance. The more expensive the car, the more your premiums will be.
Where you live will help determine your homeowner’s insurance premiums. Do you live closer to a fire station? If so your premiums will be lower. If you live out in the country where there is little fire service, you may pay more.
The age of your home also will impact your insurance costs. Homes that have not been updated or maintained will also see higher insurance premiums.
If you have teen drivers living with you, your auto insurance will be higher than those families that do not have teen drivers.