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Understanding Car Insurance Premiums

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

Insuring a $35,000 car for its full replacement value 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 a lot out of pocket in case of an accident. Most states require you to have a minimal amount of insurance. Beyond that, it's a balancing act.

A State Farm® agent can help you make smart choices for your situation. Or get a free online car insurance quote to see immediately 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 premiums. Where you live and how much you drive will also affect your rates.

Car Insurance Rates and Discounts

Based on the policy options you pick and your history, an insurance company will quote you a base price. Qualifying for one or more discounts will reduce the cost of your car insurance premium.

State Farm offers low basic rates and a wide variety of discounts. For example, you'll see serious savings if you're a good driver, get good grades, insure multiple cars together, buy a car with safety features, or insure your home with State Farm.

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

The Difference Customer Service Makes

Getting a low 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's 17,000 Agents, 300 Claims Centers, and 87,000 employees are committed to providing exceptional customer service. Whether you need to file a claim or just get a question answered, our Call 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.

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1 Average annual per household savings based on a 2013 national survey of new policyholders who reported savings by switching to State Farm.