How is My Auto Insurance Calculated

How is my auto insurance premium calculated?

The following are a few things that insurance companies uses to calculate your auto insurance rates.

  1. Your Zip code

Oftentimes, auto insurance premium price difference is easy to observe when moving to a new address. For instance, if you move from zip code 27615 to zip code 27604 (both zip codes are Raleigh, NC) your insurance rate would go up. The reason for this is insurance carriers are having to pay more claims in 27604 than 27615 in 2019. Therefore, zip code 27615 had less accidents, less theft, and less loss over-all. Moreover, if several of your neighbors had major auto accidents then it is a high probability that your rates are going up. See zip code statistics.


  1. Age and the length of driving history

Consider this, an inexperience driver will pay more for auto insurance than any other category of drivers. Usually, inexperience operators are teen-agers or people trying to get their driver’s license for the first time.


  1. Driving record

Literally, we all already know if you are prone to having accidents, speeding tickets, wreck-less driving, or DUI’s your auto insurance premium is going to extremely high. Maintaining a good driving history is essential in a low auto insurance premium. Look up your driving record.

  1. Insurance Points

However, there are two different types of points. First, are the insurance points. Secondly, are the DMV (dept of motor vehicle) points. Insurance points are assign when an insurance carrier pays out a claim against your auto insurance policy. For every $1,000 paid out 1 point will be assign to you. For example, if a deer runs into your car and causes $3,000 of damages you now have accumulate 3 insurance points. Similarly, DMV points are points received when you get a speeding ticket or other moving violations. Therefore, the DMV determines the amount of points assigned to you for your violation. Contact us at Capital Insurance Agency of Raleigh, LLC for a free quote and get more information on your insurance points.

How Is My Auto Insurance Calculated

  1. Are you in a Marriage or single?

In comparison, couples get a decent price break on their auto insurance premium especially if both drivers have good driving records. Likewise, Uncle Sam gives couples a big tax break for married filing joint.


  1. Sex male drivers versus female drivers

Howbeit, insurance carriers calculate auto insurance higher for men than women. Of course, It all comes down to men take more risk than women. Wherefore, insurance carriers rate women as safer driver due to lower risk taker activities.


  1. Family member driving history and credit

In contrast, a young man ask me for a non owners operator insurance policy. Usually, for teen-agers this policy comes in at about $50 per month, but for him it was over $250 per month. However, this young man had a clean driving record and no points. Consequently, the reason why his premium is so high is because his parents low credit score affects his premium. Click here to learn more.

  1. Credit Score

In conclusion, credit is a large factor on how your auto insurance premium. To sum it up, the higher your FICO the lower your premium.

  1. Discounts to apply
    1. Job title
    2. Academic achievement
  2. Homeowner vs renting
auto insurance near me calculator

auto insurance near me calculator


Capital Insurance Agency of Raleigh, LLC
4104 Atlantic Avenue, Suite #142
Raleigh, NC 27604

Phone: 984-239-5522
Fax: 919-882-9802