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5 Factors that affect both home and auto insurance premiums

There are multiple types of home and auto insurance, and a large variety of individual policies. But different as all they are, some basics influence all forms of auto or home insurance.

Factor 5: Where you live
The insurance industry runs on statistics. Your postal code provides a lot of information regarding risks to your house or car. And when you’re buying coverage for either, insurance companies factor those risks into your insurance quote. Where you live, statistically, affects how likely are you to make a claim.
How do they determine that risk? By examining details like whether there’s a high crime rate or even much traffic, in the area. Are you in a flood-prone zone or is your home/automobile subjected regularly to severe weather events? If so, you’ll likely pay more to insure your home or car than people who live in areas without these factors. You may even have to consider adding insurance riders or supplemental insurance to your policy.

Factor 4: The age/condition of your home or vehicle
Usually, the older a home is, the more expensive it becomes to insure. Why? With age generally comes degradation. Weaker, older materials are less apt to stand up to severe weather, and more likely to require repair or replacing. So, the insurance company passes the risk on to you with a higher premium.
It’s a bit different with auto insurance, though. Unlike homes, most older cars are cheaper to insure. That’s because they tend to have a low replacement value. (Some brands retain or even increase in value with age.)
So, insurance companies want to know the model and year your car is. Its condition matters, too. Auto insurers also want to know how much driving you do in a year. More mileage increases your chance of collision, and therefore risk of making a claim.

Factor 3: Your deductible
A deductible is that amount you pay up front when making a claim. It is not included in the amount your insurance company pays out.
How deductibles work is one of those insurance truisms that remains unchanged with all types of coverage and all markets: the higher your deductible, the lower your insurance premium is. So, it’s wise to have enough funds on hand to cover your deductible in case you do have to make a claim.

Factor 2: Previous insurance claims
Most people buy insurance hoping they never to have to use it. However, if you do make a home or auto claim without having purchased Accident Forgiveness or Property Claims Protection, it’s likely your premiums will increase. Also, if you were in an accident that wasn’t your fault, it shouldn’t affect your driving record.
If you do make a claim, your insurance company will deem you a higher risk for making another claim in the future and likely raise your rates. Changing companies won’t keep your insurance-claim history secret. The industry’s thought of that.

Factor 1. Combining both with one company could entitle you to a discount
Insurance companies want more of your business. Taking your home and auto products to one company should entitle you to a discount. If you’re not getting that, you should reassess your relationship.
When PC Optimum™ members purchase their home and auto insurance together from PC® Insurance along with other available discounts, they can qualify for discounts of up to 35% on insurance. Go online to get a auto and home quote today.

General information not about PC® Insurance home and auto coverage is provided for your reference and interest only. The above content is intended only to provide a summary and general overview on matters of interest and is not a substitute for and should not be construed as the advice of an experienced professional. PC® Insurance does not guarantee the currency, accuracy, applicability or completeness of this content.
By combining the following discounts from participating insurers, as follows: (i) the discount offered to PC Optimum™ members in good standing off the applicable insurer’s base premium excluding any endorsements or extended coverages (ii) the bundled discount for purchasing both your home and auto insurance with the same insurer through PC® Insurance and (iii) the claims-free and convictions-free discounts if you qualify, subject to regional availability. Total savings of up to 35% is in comparison to the base premium excluding any endorsements or extended coverages from the participating insurer you would have paid if these discounts were not applied. Valid only for new customers or renewals; does not apply to current policies.

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