4 Car Insurance History Factors That Impact Your Premium

When it comes to your auto coverage premium, there are various types of information that the car insurance company collects and uses to determine how risky it is to offer you coverage and how much you should be charged. One of the major factors that insurance companies consider is your car insurance history, which can be broken down into multiple different factors.

Factor #1: Length of Time at Last Insurance Agent

If you have been with the same company for multiple years, they may reward that by offering you a loyalty discount. Be sure to let them know you are shopping around and see if they will offer you a loyalty discount, if you don't already have one.

Factor #2: Former Insurance Company Type

Next, when you are shopping for insurance, companies will ask who your former provider is. They may judge just how risky it is to take you on based on who your previous provider was.

Suppose you had insurance through a company known for providing policies to high-risk individuals. In that case, you might face higher premiums for a while until you can prove that you are no longer a high-risk individual to ensure.

Factor #3: Insurance Claims Filed

There is a national database that insurance companies can access that lets them see how many claims you have filed over a set period. They can also see if you were ruled at-fault or partially at-fault for the accident. If you were at fault, that could result in a more expensive premium, especially if you are looking to get full coverage. If you have gotten into a higher than the usual number of accidents, you could face a higher premium, even if you were never declared to be at fault.

Factor #4: Insurance Lapse

Fourth, car insurance companies are going to want to know how long you have had continuous coverage. They don't like to insure individuals who have had lapses in coverage. Lapses in coverage imply that a car insurance company dropped you or that you couldn't afford to keep coverage.

Even if you sell a vehicle and go without a car for a while, it is a smart idea to get a non-owner auto insurance policy to keep continuous coverage. Continuous coverage is about your coverage as an individual, not about your vehicle.

When you get an auto premium quote, one of the factors that companies will consider is your history with other insurance companies. They will want to know how long you have had continuous coverage, what companies you had coverage with, and how many claims you have filed. This is just one category of factors they will use to determine the premium that they quote you. 

For more information on what factors impact your premium, talk to a car insurance provider in your area.

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