Insurance rates are factored on an individual basis. Not only to insurance rates factor in your personal financial and insurance history, they factor the property to be insured. So if you and a friend are discussing auto insurance and he pays less than you do through the same company there are many reasons for this.

Here is a list of factors that affect the price of your auto insurance:

Driving record. A spotless driving record will provide lower rates.
Type of car. The value and performance rating will affect rates. Sports cars or rare cars can be more to insure than your average vehicle.
Miles driven per year. Driving more miles per year will increase rates.
Location. A person in the suburbs will pay less than a person in a large city.
As for homeowner’s rates, there are other factors that impact the cost of insurance:
Home replacement cost. This confuses people. It’s not what you paid for the home, but what it would take to replace it. For instance, if you live in a very popular area where home prices are driven by demand, then you may have paid a lot for your house, but the insurance costs are minimal because it may not be that expensive to replace it.

Location. Is your home in a flood zone or prone to earthquakes or tornadoes? These impact cost.

Value of possessions. Do you own a lot of expensive items?

Previous insurance history. Have you filed many claims before? This could make your rates go higher.

Deductible. A low deductible (the amount you pay if you file a claim) can increase your rates.

So, as you can see there are a lot of factors that influence your insurance rates and it’s not always easy to compare your policy to your friends. The bottom line is this. If you have questions about your policy and your rates, simply contact your agent.

If you have questions about your insurance, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.