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Auto Insurance and Your Premium

By May 17, 2018April 2nd, 2020Auto Insurance

A client recently said we were the best insurance agency in Greenville.  What a compliment!  We know that choosing your insurance agent is one of the most important decisions you will make, and we take pride in caring for our client’s needs at every stage of life.

Recently, we shared how late payments can adversely affect your auto (and home) insurance premium.  This month, we want to talk about the various factors that go into determining the premiums for auto insurance and what you can do to help ensure your premium is accurate.  Let’s begin with an summary of what auto insurance is for.

Auto insurance is designed to help you recover from damage, injuries and expenses related to a collision or other incident. The purpose of auto insurance is to keep you from suffering major financial hardship due to an accident, whether it’s your fault or not.  Auto insurance is also about risk transfer. If you don’t have insurance, the financial risk is on you in the event of an accident. Having an auto insurance policy mitigates some of that risk. For the cost of your premium, the insurance company will take on much of that risk for you.

Auto insurance premiums are calculated by a number of factors, including:

  • Policy details (coverage limits and deductibles)
  • Auto usage and rating
  • Driving records of all drivers on your policy
  • Your insurance score which uses your credit record
  • Age and gender of the drivers on your policy
  • Where you live
  • Type(s) of cars on your policy
  • Payment timeliness

Progressive Insurance came out with a program called Snapshot, which is a mobile app or plug-in device that bases your premium on how, and how much, you drive.  This data is used to offer customers a personalized rate based on driving characteristics instead of just basing the premium on the traditional factors mentioned above.

While this device may make you feel like “big brother” is watching you, Progressive reports that all drivers receive a discount for signing up and most drivers earn a discount based on their actual usage.  Other companies are following suit, and we may very well see this type of program being used by all of our companies one day.

One area that is currently affecting auto insurance premiums is related to the classification of your vehicle.  Click here for more on this topic and be sure to contact us (or your agent) if your annual mileage has decreased or your auto usage has changed.  You could be eligible for a discount.  Above all, please contact us with any questions.

The Turner Agency, Inc. is a local Trusted Choice® independent insurance agency located in Greenville, South Carolina and in Clemson, South Carolina as the Sosebee Agency. Serving the Upstate of South Carolina and beyond since 1962, we offer a variety of personal and business coverage choices and can customize an insurance plan to meet your specialized needs for homes, automobiles, recreational vehicles, secondary homes, and your business. Contact The Turner Agency or the Sosebee Agency, a Turner Agency partner, today.