Car Insurance Premium Factors and Savings

When you're shopping for car insurance, every company is happy to give you a quote. But how do they come up with those numbers? In many cases, the choices you make affect the amount of your car insurance premium.

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Car Insurance Coverage and Deductibles

Including all the major coverages when insuring a $35,000 car will cost more than getting minimal coverage for a $500 beater. You want to be careful, however. Going for the lowest possible car insurance premium now means you might have to pay more out of pocket in case of an accident. Most states require you to have a minimum amount of auto liability insurance. Beyond that, it's a balancing act.

A State Farm® agent can give you the information you need to make smart choices for your situation. Or you can get a free online car insurance quote to see how your choices affect the amount of your premium.

Your Driving Behavior

It's no surprise — drivers who get tickets or are involved in accidents pay more for their car insurance. Where you live and how much you drive will also affect your rates.

Car Insurance Rates and Discounts

Based on the coverages you pick, where you live, the kind of car you drive, how your car is used, who drives the car, and information from consumer reports, an insurance company will provide you a quote. Qualifying for one or more discounts will reduce the cost of your car insurance premium.

State Farm offers affordable rates and a wide variety of discounts you may qualify for. For example, you'll see serious savings if you qualify as a good driver, get good grades if you are a student, insure multiple cars together, buy a car with qualifying safety features, or insure your home with State Farm.

How much money are we talking about? Switching to State Farm typically saves customers almost $500 per year in car insurance premiums. Just adding a homeowner's policy can be worth over $800.1

Worried you'll miss a discount? The Discount Double Check® program from State Farm is designed to make sure you get everything you're eligible for.

The Difference Customer Service Makes

Getting an affordable car insurance premium is important. It's also important to know that your insurance company will be there for you if an accident occurs. State Farm has 18,000 Agents, Claims Centers, and 65,000 employees committed to providing exceptional customer service. Whether you need to file a claim or just get a question answered, our Customer Care Center is available 24/7 and our Pocket Agent® mobile app is as close as…well…your pocket.

Talk to a State Farm agent or get an online car insurance quote to see how low your car insurance premium can be.

1 Average annual per household savings based on a 2014 national survey of new policyholders who reported savings by switching both auto and homeowners to State Farm.