When it comes to the things you love, the right home, property, or auto insurance policy can make all the difference. Between liability coverage and comprehensive protection, getting your belongings repaired after an incident is a relatively simple process. However, if you’re like most people, you probably decided on the coverage based on the monthly premium payment. But do you understand how those premiums are determined? The team at Phil Taylor Insurance Agency in Clarksville, AR, has put together a list of the main factors that affect your insurance premiums.

3 Factors that Influence Your Monthly Payments for Home, Property, & Auto Insurance

1. Value of the Property

The more expensive the vehicle, boat, or house, the more your insurance premiums will be. This is because the insurance company will have to pay more for repairs or replacements if you ever file a claim. Part of this cost is passed onto you in your monthly premium bill. If you raise your deductible, you can lower the premium, but it’s important to make sure you can still afford the increased out-of-pocket payment should you ever need to file a claim.

2. Where You Live

Everyone faces different risk factors based on location. If you’re based in a highly populated urban area where accidents and theft are more common, you’ll likely see a higher insurance premium than if you lived in the suburbs. After all, if you’re commuting to work on crowded streets, you’re more likely to get into an accident and need to file an auto insurance claim. However, if you’re in a rural area, you’re more likely to go years without filing a claim, and the insurance provider passes their savings onto you in the form of lower monthly premiums.

3. Your Claims History

If you have a history of filing multiple claims each year, whether it’s on your homeowners policy or auto insurance, you’ll likely pay higher monthly premiums. The more you need to utilize your policies, the more money the insurance provider must spend to cover the damage. Similarly, if you only file a claim every couple of years, your insurance company will likely offer you a more affordable rate.

Whether you’re looking to lower your monthly premiums or need to upgrade your auto insurance policy, the team at Phil Taylor Insurance Agency is ready to help. Their friendly and experienced agents will work to help you find the best policy for your needs and your budget. Learn more about their services online and call (479) 754-2616 to get a free insurance quote today.