Insurance Premium Determining Factors

How Insurance Premiums are DeterminedHow Insurance Premiums Are Determined

Insurance coverage is essential to our daily lives, however, many of us have no idea how our rates are calculated and simply pay the price without any further thought. Rather than remaining uninformed, it is important that you consider how insurance premiums are determined. Compiled is a list of some of the top premium factors:

  • The coverage you opt for will be a strong determining factor in how much you pay for auto insurance and homeowners insurance. For example, obtaining the minimum required auto insurance will be much less expensive than purchasing the optimal amount of coverage. However, there is no price tag on safety!
  • Your deductibles will also determine your monthly bill, as higher deductibles yield lower premiums and vice versa. When choosing a higher deductible for a lower premium, make sure that your emergency fund can cover your deductible amount should an accident occur.
  • If you have a low credit score, your financial responsibility will be questioned. That is why it is important to maintain a favorable credit score.

Contact VGW Walker Insurance for all of your Texas homeowners insurance and auto insurance needs.