Chicago Area Toyota and Scion Show You What Goes into Your Insurance Premium

May 19, 2015

For many of us, car insurance is just another utility bill. It’s just something we pay. When our rates go down, we’re happy. When they go up, we grumble but pay it anyway. If you’ve ever wondered what goes into the math to make up your insurance premium, Continental Toyota and Scion, your Chicago Area Toyota dealer, has the answers.

Your Coverage and Your Record

Let’s start with the obvious. Like all things, if you want more, you need to pay for it. Getting $300,000 worth of liability coverage is much less expensive than $950,000. The more you want the more you’ll be charged in your premium. However, insurance is about risk. If your driving record has multiple accidents, traffic violations, or suspensions, you can count on paying more.

Location and Use

The next biggest factor has to do with geography. If you live in the middle of nowhere, you’re really not likely for an accident. On the other hand, a metropolitan area like Chicago sees accidents all the time. Similarly, if you’re driving 20, 30, even 50 miles a day for work, your premium will be higher. The more you’re on the road, the greater your chance of an accident.

Age, Sex, and Credit

If you’re in your early 20’s, you can expect to pay more. Risk behavior is still an issue for the young. Likewise, older drivers over 75 can see higher premiums, too. Males almost always pay more than females (again: risk behavior is higher). Finally, your credit can affect your payment, too. If your credit is bad, insurance companies can see you as a payment risk and so charge you more.