Archdale, North Carolina

3 Important Factors That Play a Role in the Cost of Auto Insurance November 30, 2017

Archdale, Randolph
3 Important Factors That Play a Role in the Cost of Auto Insurance, Archdale, North Carolina

As many people around the country shop for auto insurance, they often run into quite a bit of cost-related jargon—premiums, risks, or liability. But what does it all mean, and how does it affect the cost? Thankfully, Farm Bureau of Archdale-Campbell Agency, an insurance provider in Guilford County, NC, is here to help answer this question. 

What Affects the Cost of Auto Insurance?

1. Premiums

auto insuranceYour insurance premium refers to the monthly or yearly payments you make to your company. The company will determine how much a premium costs based on a variety of factors, which include the driver’s history, type of coverage in a policy, and chances of a claim occurring. For example, if a driver has a history of accidents, fender benders, and even tickets, the company is more likely to charge a higher premium. 

2. Deductibles

Another factor that determines the cost is the amount of risk the driver is willing to accept. This is in the form of a deductible, a predetermined amount of money an individual must pay before the insurance begins covering expenses. If an accident occurs, and the driver’s vehicle takes on $1,000 worth of damage, but the driver holds a policy with a $500 deductible, then they must pay that $500 before the company covers the rest. If a driver is willing to take on more risk with a higher deductible, then they can often receive a lower premium.

3. Complete Coverage

With complete coverage and additional options, drivers are more likely to have a higher cost for their insurance. While some might choose to not receive these options, others find them beneficial and worth the money. For instance, some people want to pay a small monthly fee for guaranteed roadside assistance. Should they break down on a trip or get a flat tire, the insurance company will dispatch a tow truck to help.

If you’re looking for the best auto insurance rates, turn to Farm Bureau of Archdale-Campbell Agency. With their personalized approach, they offer the rates and options you need at every stage of your life. If you would like to learn more about their policies, reach out to a trusted insurance agent at (336) 434-6550 or visit their website.

Other Announcements, Events and Deals from Farm Bureau Insurance of Archdale-Campbell Agency
What Are the 2 Main Types of Life Insurance?, Archdale, North Carolina
When you think of protecting your family and property, your first thought is likely a home insurance policy. While this coverage will protect your family’s finances, it’s not the onl...read more
How Much Life Insurance Do You Need?, Archdale, North Carolina
If something were to happen to you, a good life insurance policy could allow you to take care of your family and other responsibilities even after you’re gone. Making the choice to p...read more
Why It’s Important to Sign Up for Health Insurance During Open Enrollment , Archdale, North Carolina
Unexpected health problems can arise at any time, making it crucial for everyone to have some form of insurance coverage to help pay high medical costs. Since the introduction of the...read more
Archdale Health Insurance Agent Shares 3 Tips for Staying Well This Holiday Season, Archdale, North Carolina
Winter might not have hit North Carolina yet, but the weather has cooled, and your family is probably already spending a lot more time indoors. Spending more time in close quart...read more