Whether you are in the market for auto insurance, homeowners insurance or any other kind of insurance, it makes a difference which insurance company you choose. Every insurance company is different, and they may look at individuals differently when it comes to issuing policies and assigning premiums.
In general, all insurance premiums are based on the level of risk presented to the insurer by the party to be insured. The lower the risk you present, the lower your premiums will be. As a simple example, term life premiums are based primarily on age and health. A 20-year-old male in perfect health and physical condition has a far lower chance of dying than a 50-year-old with emphysema. The 20-year-old could probably get a million dollar 20-year term life policy for less than $100 per month in premiums while the 50-year-old with emphysema might not be able to qualify for a policy at any price.
Automobile Policy Premiums
Your insurance company matters when buying auto insurance because premiums can vary greatly depending on the category of risk you happen to fall into at the time you apply for insurance. Auto insurance rates are based on such factors as your age, sex, type of car you drive, where you live, your driving record, your credit record and many other variables. Some insurers place more weight on one category than the other, which can affect your personal risk assessment and result in higher premiums. Shopping around, you might find the exact same coverage for several hundred dollars less depending on the insurance company you choose.
Service Matters, Too
You should not shop for insurance based solely on the lowest premium you can find. Having a good insurance company that pays claims promptly and offers great overall customer service is well worth a few extra dollars in a monthly premium.
Multiple Lines of Insurance
For both convenience and bundled savings, if you purchase several different policies from a single insurance company, you can often get a substantial overall discount. If you go to an insurance firm that only sells auto insurance, you may be depriving yourself a better deal on all of your insurance needs.