Every time you get into a vehicle, you run the risk of being involved in an auto accident, either by your own negligence or from another driver on the road. If you own a car, the N.C. law mandates that you have auto insurance to provide protection from a financial impact that may result due to an auto accident, but do you know how auto insurance rates are determined?

Below Are Some of the Important Rating Factors That Impact Your Premium, but Not Limited to: 

  • Driving Experience- Length of time you have been driving
  • Driving Record- Record of any auto accident charges and/or tickets
  • Claims History- Record of prior accidents and claim payouts
  • Type of Vehicle- Type of car you own and operate
  • Mileage- Distance you typically travel in the auto
  • Insurance Score- Credit based insurance score, which varies per person

Basically, insurance companies use statistical models to predict the premium rates to charge based on the likelihood of an auto accident happening. There is a direct correlation between the risk factors and the cost of the insurance premium being charged.

Some Things are Out of Your Control

There are also some factors that are unrelated to you that may impact your insurance premium and include the following:

  • Distracted driving leads to more auto accidents
  • Lower gasoline costs and more jobs drive up the number of people on the road, increasing the number of auto accidents
  • Increased cost of new vehicles that come equipped with safety features (auto emergency braking, back up camera) and the cost to repair/replace them
  • Rising costs of medical treatment when an auto accident happens 

Sadly, you have zero control of the above situations, but the good news is there are some things you can do to ensure you have the right type of N.C. auto insurance coverage for your current situation.

Your Insurance Premium Can Be Reduced!

How Auto Insurance Rates Are DeterminedWhile some insurance rate predictors are out of your control, you can rest assured that there are some things you can do to positively impact your auto insurance rate. Some situations to consider include:

Contact your local N.C. independent insurance agent to review your auto insurance policy- Discussing this can help ensure you are getting the right insurance coverage and value

Carry higher deductibles on your auto insurance policy- Weigh up the savings from a reduced premium with possible out of pocket expenses resulting when a claim is paid and settled

Bundle your homeowners and auto coverage- Discuss with your independent insurance agent

Practice safe driving tactics- Safe drivers have lower insurance rates

Enroll in safe driving courses- You may qualify for a discount with enrollment

Pay your premiums on time- Avoid late penalty fees

Call Paramount Insurance, Your Local N.C. Independent Insurance Agent TODAY and Let Us Shop Your Insurance For You!

By discussing your current situation and auto policy with your independent agent you can ensure that you are getting the right type of auto insurance coverage at an affordable cost. Protection plus price equals VALUE!