Seven Ways To Use Insurance Premium To Your Advantage

Seven Ways To Use Insurance Premium To Your Advantage

| August 19, 2021
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If you have your own insurance policy, you pay a premium.  Some pay more, others pay less.  There are a few factors that determine your cost of insurance -- let's look at a few more closely.  

What You Drive

The size and type of the vehicle you drive matters.  It's not a matter of status symbol, but more in the "if" category--thus the risk you are willing to accept.  A larger/heavier SUV may cause more damage than an mid-size sedan or a small compact car.  For each vehicle, the insurance companies look at the odds:   

  • Would your vehicle likely be stolen?
  • If damaged, how much would it cost to repair the damage?
  • What is the overall safety rating on your vehicle? How big is the engine?  

When purchasing a vehicle, be aware if your vehicle is one of the top 10 most stolen in the United States.  You may pay a higher rate for your vehicle than one not listed here.  

In 2018, these were the top 10 most stolen models:

  1. Honda Civic 
  2. Honda Accord
  3. Ford pickup
  4. Chevrolet pickup
  5. Toyota Camry
  6. Nissan Altima
  7. Toyota Corolla
  8. GMC pickup
  9. Dodge pickup
  10. Jeep Cherokee/Grand Cherokee 

When purchasing a new or new-to-you vehicle, consider purchasing one not on the most stolen models, and consider the size of engine, safety features, and potential cost to repair.  This could potentially help reduce your costs. 

The Department of Motor Vehicles Report

Your driving experience matters. 

If you are new to driving, you do not have the experience of those who have been driving 10 years or more.  A state DMV driver's education handbook/manual only takes you so far -- it's the application practice that makes the difference.  With lack of experience in application, many insurance companies may charge more for those inexperienced drivers, as the potential for an accident or incident is greater.  This rate may be reduced after five years, depending on the driver's department of motor vehicles record.  

On the flip side, many insurance carriers increase insurance rates for senior citizens over 65 years of age due to potential slower reaction time, changes in eyesight, changes in hearing, and overall health.   

To find the best company for inexperienced drivers and/or senior drivers, contact our independent agency for a consultation, or get a sneak peek by shopping our online options:  Quote Me Now or Let's Get Started.  We have many auto insurance companies with which to help you find the best premiums for you both now and in the future.                             

Post-Pandemic Miles 

With the Coronavirus pandemic of 2020, many people stayed home and did not drive often. 

This pandemic created newer insurance products, like "pay-per-mile" where premiums were calculated based on the number of miles per month you drove, and was calculated utilizing a device inserted into your vehicle.  The theory is the less you drive, the less potential for your being involved in an accident or incident, thus resulting in a lower premium. 

Prior to the pandemic, some insurance companies gave classifications of "Business use" or "Pleasure use."  With Business use, an estimation of the number of miles per year or per 6 months, depending on the policy term, you would drive.  If for business use, it was usually easier to calculate, particularly if you had the same routine daily.  The more you drive, the higher the potential for incidents/accidents to occur, thus potentially resulting in a higher premium than those who drive less.   

Insurance Based Credit Score

Most insurance companies pull your insurance based credit score when you accept the insurance proposal contract. 

An insurance score is an indicator the insurance companies use, showing the likelihood of your being involved in a future accident or filing an insurance claim. 

This information is based off of other policyholders with similar credit characteristics who have had previous claims with the same insurance company you are contracting with.  Ways to improve your insurance credit score is by making loan payments on time, reducing credit applications and keeping your accounts in good standing through paying on time.  Those with a good insurance credit score may receive better premiums.  *Insurance credit scores are considered a "soft hit" and will not affect your credit score.  

Limits of Insurance

The limits of Liability insurance and/or Comprehensive, Collision, Personal Injury Protection/Medical Payments, Rental Reimbursement, and/or Roadside Assistance you selected on your vehicle(s) can also determine the rate of insurance. 

While many ask for "just the minimum" or "street legal," or "full coverage,"  these are not actual insurance terms and may cause confusion without a consultation with one of our licensed insurance representatives.  We are licensed in OH, SC, NC, IN, FL, GA, MA, IL, ME, MI, NJ, PA, UT, WI, AZ and TX; contact us today for a review of your insurance coverages -- what you believe you have and what you want.  

Having the right protection for your situation before an incident/accident occurs is ideal.  Being caught up in having the cheapest insurance may leave you open to not having enough insurance protection and having to come out of pocket.  


Many insurance companies offer discounts to help reduce premiums by combining vehicles and homes with a bundling package. 

If you have the following, you have an option to bundle: 

  • Auto + House
  • Auto + Renters/Tenant
  • Auto + Condo

Premiums can be discounted from 5% up to 25%, depending on the insurance company and the state you reside in.  Too good to be true? It's super easy to get a quote from multiple insurance companies - click here now to see your savings. 

Location - Location - Location

Yes, it truly matters the region you reside in.  Location factors into the premium you will pay. 

If you find the best home and it is in a known higher crime area, then your premiums may be higher. 

By parking your vehicles on the street versus a garage or carport, the potential for incidents may be greater in a higher crime area:  vandalism, theft, and even accidents. These incidents/accidents can occur in more rural areas as well, but the frequency is not as great.   

We Are Here To Help You Find The Best Premium 

At Consultative Insurance Group, we are able to help you find the best premium that fits your needs and especially your budget. 

We do not offer cookie-cutter vehicle insurance, but listen to your individual needs, shop multiple insurance companies, and help you get the insurance protection you need without breaking the bank!

We look forward to working with you:

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