Understanding Auto Insurance Rates 

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What Factors Influence The Cost of Your Automobile Coverage 

Brunswick Companies understands that an informed consumer is better able to make educated choices. As a result, we're providing you with an overview of the major factors used by auto insurance carriers to determine the rate of the policies we offer.

The basic components of determining a premium for an auto policy are:

• Vehicle Information
• Vehicle Usage
• Vehicle Location
• Driver Age and Record
• Deductible
• Premium Credits 

Vehicle Information 

• Type of Car:
  
  
  • Size. Larger cars tend to be comparatively less expensive to insure because they typically suffer less damage in an accident, particularly if they collide with a smaller vehicle. Conversely, smaller cars tend to suffer greater damage in an accident and typically are rated on a higher scale.
    
    
  • Performance. Sports cars tend to be more expensive to insure since they are statistically driven more aggressively and as such, tend to be involved in accidents more frequently. 
    
    
• Value of Car:  Generally speaking, the more expensive the car (within similar size and performance categories), the more it will cost to insure.
  
  
• Age of Car: A newer car of a certain type or model will typically cost more to insure than an older vehicle of the same type or model.

Vehicle Usage

How far the car is driven per year or daily can impact the cost to insure it. In general, the more a vehicle is driven, the more it will cost to insure. The rationale behind this is that greater time on the road means greater exposure to accidents and other losses.

Vehicle Location

Where you reside (or where your vehicle is garaged) has a major impact on what  your automobile insurance will cost. In general, a more densely populated area will typically bring about higher premiums than less populated area. This rating method, called territory rating, is practiced because as the number of people and cars in a given territory increase, the amount of claims on policies tends to increase as well.

Driver Age and Record 

• Driver Age. Who drives the car is one of the most significant factors in determining what rate will be charged. Young drivers (those under 25, and especially teenagers, and particularly males) generally are charged the highest rates. Statistics show that this group typically is two to four times more likely to be in an accident when compared to mature drivers.
  
  
• Driver Record. The driving record of the individuals listed on the policy is also an important factor in the premium charged:
  
  
  • Drivers with moving violations such as tickets for speeding or running a stop sign will usually pay a higher price for their automobile insurance. The more incidents they have, the greater the impact on their premium. Also, studies show that drivers with violations also have a greater number of claims than drivers who have none.
    
    
  • Drivers with prior claims, particularly "at fault" accidents, generally will pay higher premiums than drivers who are loss-free. Also, studies show that drivers with past claims are more likely to have future claims.

Insurance companies generally consider only the violations, accidents and claims that have occurred in the past three years. 

Deductible Choice  

Typically, the higher your deductible, the lower the premium. Studies show that the average driver has a claim every five years or so. Therefore, you may save more over the period of time (including the cost of the claim itself) by choosing a higher deductible as opposed to carrying a lower one. 

Premium Credits

Many companies give premium discounts in certain states for things like anti-lock brakes, air bags, anti-theft devices and having more than one car on the policy.