Car insurance is a great thing…except for when the bill comes. Many of us wonder how they come up with the number they give us. Well, your Bethlehem Area Toyota dealer wants to pull back the curtain on what affects your insurance premium the most.

 

What You Get

This is the most obvious factor. If you want a lot of coverage for your car and yourself, it’s going to cost you. Likewise, going for a higher deductible can cut down on your monthly, semi-annual, or annual premium, but just be careful you don’t put yourself on the hook for too much.

 

Car Use and Location

How far you tend to drive your car affects your premium since the more you drive the more likely it is you’ll get into an accident. However, there can be a difference between street parking and a driveway or even a difference between one city and the next due to crime rates.

 

Age and Gender

We’ve known this for a while, but people under 25 pay more than mature adults and men tend to pay more than women. Much of this has to do with statistics and probabilities, but really it comes down to the fact that older drivers and women are less likely to take risks.

 

Your Credit

Not a lot of people know that insurance companies use credit scores and credit checks to determine coverage cost. If you have bad credit, the insurance company may see you as an increased risk because you may not be able to cover your deductible because of outstanding debt.

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