When you buy a new vehicle policy, the actual amount you pay for the coverage you purchased is called the premium. Just as the levels of coverage you get will vary greatly, so will your Amigos auto insurance premiums. In simple terms, the amount you pay for your insurance is the premium cost.

Most insurers can pay the premium expense in several ways: annually, semi-yearly, or monthly installment payments. People that have the money to pay their premium in full usually receive a small discount of 2 to 3%. The most popular payment term by far is monthly. Many companies have simple payment plans that can be set up and paid automatically each month by using a debit or credit card.

It also makes sense in many ways to break up the cost of the premium into smaller increments because if you ever decide to cancel your coverage, there won’t be a delay in getting back your refunded amount.  So if you purchased an auto insurance policy for the annual amount of $1,200, you could budget and pay $100 monthly, for example.

For many people on a strict budget, this payment flexibility is the only way they can afford to get covered. To check your premium cost, just enter your zip code. Amigo Insurance will provide you with up to 10 quotes in about four to five minutes. 

Amigos Auto Insurance Premium Factors

There is no getting around buying insurance if you plan on operating a motor vehicle. Each state has set forth strict laws that require drivers to carry certain minimum levels of protection. Some states, like Florida, have lower levels of mandated liability coverage, while other states, like California, have higher minimum limits. Check with your state insurance department for the specific requirements where you live.

Insurance companies use sophisticated algorithmic formulas to determine the premium cost you pay for insuring your vehicle.

Each piece of information that you enter when you apply for a quote is used as a rating factor. This means everything from the zip code you live into, whether you garage your car at night or park it in the street, will play a role in calculating your rates. Insurers plug all this info into their algorithms and spit out a premium rate quote. The most important factors that will either increase or decrease the premium cost are:

1.  The Car you Drive
The type of car you drive has a big role in determining the price you pay for coverage. More expensive vehicles like a new Range Rover will logically cost a lot more to get covered than a broken-down old sedan that is worth just three grand. This is just simple common sense. If you wreck and need to replace a car that is worth $60,000 as opposed to the old sedan that can be replaced for $3,000, insurers will end up spending 20X times more for a total replacement accident.

This added financial risk is passed onto the customer in higher premiums. If you do get an expensive car, make sure to get a higher deductible and get all the discounts you can, so you pay less. On the flip side, if you have an old car that you don’t drive much, consider getting liability-only coverage. It doesn’t make sense to get more expensive comprehensive coverage for old cars because they are just worth so little.

Why pay an extra $600 a year for extended protection when in 4 or 5 years, you have paid out in premiums that total the actual Kelley Blue Book value of the vehicle? Be smart when you buy Amigos auto insurance and always get the coverage you need and nothing else.

2.  Your Sex and Age

Drivers from the age of 16 to 25 will pay upwards of double what older drivers pay. Age is a huge factor in rates. The stats do not lie. Teens get into more accidents than any other age group. The trend is on the upswing with so-called “distracted driving,” such as risky behavior like texting and even using Skype while driving.

The good news is most young people get a break once they turn 25. If you are a teenager or younger adult driver looking for a price break, take a defensive driving course and get good grades.  These two things can lower your premiums by 10% or more.

3.  Your Driving Record

Safe drivers with good driving records pay a lot less for Amigos auto insurance premiums. Conversely, risky drivers who have been convicted of driving recklessly or convicted of a DUI can have their rates skyrocket or coverage canceled altogether.  Keep a good driving profile, stay accident-free, and your rates will decrease.

driving record

4.  Your Credit Score

Insurers are putting more weight lately on a person’s credit rating. They consider risky financial moves to correlate to risky driving.

This might seem totally unfair for safe and responsible drivers who have had hard financial times. The reality is that in order to get the cheapest insurance rates available, you need to maintain a credit score of at least 650. If you have a lower rating, take steps to get it improved, so you can lower your premium cost.

5.  The Type of Coverage You Buy

The more auto coverage you get, in general, the more you will pay. Adding collision or comprehensive onto your policy can cause your policy costs to go up quite a bit. However, getting the coverage you need that will protect you in the event you get into a serious accident should be the foremost objective of the policy.

If you have amassed significant assets, then you will need to get a high-limit policy that covers you in the event you are sued. If you are a young kid with no real assets to protect, you can often get by buying the cheapest liability package on the market.

Check Amigos auto insurance premiums in your area today with a quick quote from Amigo Insurance Company. Most drivers who switch to Amigos auto insurance save over $600. Get the lowest premiums for the coverage you need in about five minutes. Start saving today with Amigos Auto Insurance.