What Affects the Cost of Your Auto Insurance?

February 18, 2018||inPersonal Insurance|auto insurance, multi-policy discount, personal insurance

Massachusetts’ “managed competition” has significantly increased the variety of factors used by insurance companies to determine auto insurance premiums. Every insurance company has its own unique guidelines and applies factors differently, which is why we compare companies, coverage, and prices to help you determine the best value. While you can’t control every factor, some decisions you make will impact the amount you’ll pay.

What Affects the Cost of Your Auto Insurance?
Click here to submit an inquiry to Murphy Insurance or call us at 800 222 8711

We will ask you various detailed questions and periodically ask you to provide us with updated information so we may find the best auto coverage for you at the best price.

These factors include:

What Kind of Car You Drive

Your choice of car impacts your insurance cost. Some insurers increase premiums for cars more susceptible to damage or occupant injury and lower rates for those that fare better than the norm. Generally, the more expensive the vehicle, the more you pay. Before finalizing a car purchase decision, discuss your insurance costs with your agent.

How Much Coverage You Buy

There are 12 different parts to your auto coverage. The amount of coverage you choose in each category impacts the overall cost. We always recommend not risking a lot for a little, and it isn’t always significantly more to have the higher protection limits.

The Deductibles You Choose

Choosing a higher deductible to reduce your overall premium is an intelligent way to manage costs. You need to consider how much you can and are willing to pay out-of-pocket in case of a covered loss claim.

Where You Live

Also known as “garaging,” it can impact insurance costs because cities and towns are given different “territory” classifications based on a variety of rating factors. You must have the accurate garaging information listed on your policy. If you move or your car will be in another location for an extended period of time, you should notify us immediately because having incorrect information on your policy could affect coverage if you have a claim.

Years of Experience and Driving Record

Drivers with six or more years of experience pay lower premiums. However, drivers who commit traffic violations or are found 50% or more at fault for accidents generally must pay more than those who are accident-free for five years.

How Much You Drive

If you drive less than 5,000, 7,500, or 10,000 miles per year, you may qualify for a low mileage discount on your premium.

Other Discounts You May Qualify For

There are a variety of discounts that you may qualify for that can reduce the price of your auto insurance. These include discounts for:

  • Having a home policy or multiple cars insured with the same company
  • Having an anti-theft device
  • A vehicle with passive restraint device(s)
  • Use of public transit
  • Completion of a qualified basic and advanced driver training program
  • Number of years you’ve been with the same insurance company
  • Number of miles driven annually
  • Years of driving experience
  • Being age 65 or older
  • Being a high school or college student maintaining a grade average of “B” or 3.0 or higher.
  • Having a student residing in your home who lives away at college.
  • Being a member of a group/organization approved by the state for a particular group discount
  • Being a motor club member, i.e., AAA, Cross-Country, GM Motor Club, Onstar, etc.

Learn more about Auto Insurance Discounts at Murphy Insurance

NOTE: This information is only a general description of the available coverages and is not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements. Some coverage may be subject to individual insureds meeting underwriting qualifications and to availability within a state. For further information, contact a Murphy Insurance Agency professional.

Read Other Blog Posts

Drowsy

Preventing Drowsy Driving

Every year, the National Sleep Foundation organizes Drowsy Driving Prevention Week to raise awareness about the dangers of driving while fatigued.
Read more
Smoke Detector

Daylight Saving Time Change: A Perfect Reminder to Check Your Smoke and CO Detectors

Daylight savings time is a perfect opportunity to keep your home safe by checking your smoke and carbon monoxide (CO) detectors. Time change days are memorable markers, making it easy to establish this habit without any extra reminders.
Read more
Flooding

Why Flood Insurance is Essential: Lessons from Hurricanes Helene and Milton

The devastating impacts of Hurricanes Helene and Milton have shown that flood risk isn’t limited to coastal areas. These storms have highlighted a crucial gap that individuals and businesses need to be aware of: flood damage is generally not included in typical home, condo, renters, or commercial property insurance, making a separate flood insurance policy essential for true protection.
Read more
Deer

Defensive Driving to Avoid Deer Collisions

With deer mating season in full swing from October through December, drivers face an increased risk of collisions. As deer are more active, especially around dawn and dusk, habitat loss has pushed them closer to roadways. Here’s how defensive driving can help you avoid an accident.
Read more
Driving Car

Factors Affecting Your Car Insurance Rate

The cost of auto insurance is influenced by a wide range of factors. Together, these variables shape the overall cost of auto insurance. With this in mind, it can be helpful to better understand how the following elements may impact your rates:
Read more
Insurance Policy

Why Personal Liability Insurance is Essential for Homeowners, Condo Owners, and Renters

An essential part of home, condo & renter coverage often overlooked is personal liability insurance, which provides financial protection if you’re legally responsible for causing bodily injury or property damage to another person, both on and off your property.
Read more
Spam Phishing Scam

Recognize Spam and Phishing Emails

As more of our daily lives move into cyberspace, hackers, cybercriminals and spam bots may lurk behind every new message that shows up in your inbox. Even robust spam filters may not be able to catch every unwelcome email. Fortunately, you can act as an additional line of defense for yourself and your electronic devices by understanding the warning signs of spam and phishing emails.
Read more
Distracted Driving

How Distracted Driving and Texting Impact Your Auto Insurance Premiums

One major reason for auto insurance premiums going up is the rise in distracted driving, especially texting while driving. Distracted driving has become a leading cause of accidents, pushing up costs for insurance companies and, ultimately, leading to higher premiums for all drivers.
Read more
Apartment living room

Keep Your Home Safe While on Vacation

Taking a trip and exploring the world is fun, but leaving your home unoccupied has some risks.  Before departing, protect your property from accidents and criminals by considering the following precautions.
Read more

Visit Our Auto Insurance Page

Auto Insurance

At Murphy Insurance, we are here to assist you in obtaining the appropriate auto insurance. Choosing the appropriate auto insurance coverage can be overwhelming. Every insurance company has its unique offerings, making it challenging to compare options effectively. That’s where we shine. We simplify the process by helping you evaluate provider and policy choices, seek out discounts, and optimize your car insurance within your budget constraints. Ultimately, our goal is to provide you with peace of mind, knowing that you and your loved ones are well-protected.