What is an auto insurance premium?

Updated: 9/11/2023
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10y ago

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An auto insurance premium is the cost one pays for auto insurance. Stated otherwise, it is the consideration that one pays for the insurer to bear the risk of payment for covered occurrences.This premium is usually paid annually, monthly, or at some other interval that the insurer permits.

An insurance premium derives from a "rate", which is an actuarial concept. Roughly defined, it is the cost of a unit of insurance, with that unit generally being $100.

Rates, from which premiums are derived, for auto premiums,depend upon several factors. Some include:

1. The nature of the coverage (for example, collision or liability)

2. The make and model of the vehicle

3. The age and driving history of the primary driving

4. The number of miles per year driven

5. Whether the vehicle is used mainly for personal or business purposes.

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Q: What is an auto insurance premium?
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What is the average premium for md car insurance?

In 2009 the average auto insurance premium for residents in Maryland is $2,295.

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The premium is the price you pay for your auto insurance. This will vary greatly depending on location, drivers, accidents, vehicles, etc.

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An auto insurance premium is how much you are paying to receive coverage from the insurance company. While some companies offer semi-annual premiums, others will offer annual premiums. Each coverage you elect to carry will have their own premium amount. The total premium is found by adding all of these premiums together.

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You shouldn't have to disclose the premium, just the prior insurance carrier and policy number. What do you care if they see the premium anyway? It's not like they are going to adjust your new premium one way or the other.

What is auto insurance premium?

An auto insurance premium, like any insurance premium, is the amount of money that is paid on a periodic basis to an insurer in consideration for which the insurer accepts financial liability for a designated range of risks. Typically, the duration, terms and conditions of the risk transfer are enumerated in a written insurance policy, as is the amount of the premium to be paid and the frequency of payment. Try this site where you can get quotes from different companies

What is a premium for auto insurance?

Your premium is pretty much your monthly bill, after deciding what type of deductible you plan on choosing. The higher deductible the lower your premium will be.

Is it a good idea to have legal insurance with your auto insurance?

Legal insurance is not the same as auto insurance; legal insurance is simply a retainer that is paid to an attorney or lawyer so that they can be help in counsel if they are needed. Auto insurance, depending on the level and premium paid, provides coverage in case of an accident.

What is the cost of the premium of auto insurance?

Insurance premium costs vary by a number of factors, location, age, driving record, model and make of car. You need to check locally

When does an auto insurance policy lapse?

When you don't pay your monthly premium or you don't renew.

Will a 2 point traffic ticket increase your auto insurance premium?

yes it may

What percentage of a typical auto insurance premium dollar is used to pay losses?


Just what exactly is auto insurance?

Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.