Laura Berry is a former State Farm insurance producer and insurance expert.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products, including home, life, auto, and commercial, and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, mainly in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers Insurance CSR 4 Years

UPDATED: Oct 15, 2021

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Here's what you need to know...

  • Your car insurance premium is the amount you pay to maintain your policy
  • Premiums can be higher or lower, depending on several factors
  • Premiums are typically paid monthly, every three months, or every six months
  • Use a comparison tool to see if you are getting the best rates available

Your car insurance premium is the amount of money you pay to keep your car insurance current and active. The amount varies, depending on the type of car insurance policy, your deductible, and any discounts your insurance company offers you. Other factors that go into determining your premiums include your driving record, credit score, and if your car has any built-in safety features. If you think you are paying too much for your car insurance, a comparison tool can let you research and compare multiple policies. Start comparing car insurance rates now by using our FREE tool above!

Paying Your Car Insurance Premium

Depending on your insurance company, you may have to pay your premiums months, every three months, or every six months. It is common for drivers that pay their premiums monthly to have to sign up for autopay. Drivers that pay their premiums in full may receive a discount, depending on the insurance agency.

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Factors that Affect Your Premiums

Certain factors could cause your insurance premiums to be higher than normal. Having car accidents that were deemed your fault and getting traffic citations can increase your premiums as can having a poor credit score.

The type of vehicle you drive and your location can also increase your premiums.

When shopping for a new car, you should also shop insurance policies by using a comparison tool. These tools allow you to input your vehicle and driving habits in order to determine the best policy for your needs and monthly budget. If you live in a high crime area or a dense urban area, you can expect your insurance premiums to be higher than if you lived in an area with less crime and population.

Lower Your Premiums by Changing Your Policy Details

The easiest ways to lower your car insurance include raising your deductible and lowering the amount of insurance coverage you have on your cars. Your deductible is the amount you pay before the insurance company starts paying for the repairs to your car. When you raise your deductible, you are assuming more of the risk for your car accident.

For example, if your insurance deductible is $100 and you get into an accident that causes $400 worth of damage, you would pay $100, and your insurance company would pay $300. If you raise your deductible to $500 and get into the same accident, your insurance company would pay nothing.

If you have full coverage car insurance and your car loan is paid off, you might consider dropping your full coverage in favor of liability insurance. Liability insurance is designed to meet the car insurance rules and regulations of your state, but it does not cover the repairs to your car or your medical expenses if you cause an accident.

Instead, liability insurance covers the other driver if you cause an accident. If you are determined to not have caused the accident then the other driver’s liability insurance would cover your car repairs and medical bills.

Check Your Discounts

If you’ve already lowered your deductible and your insurance policy and still find your car insurance too expensive, make sure you are receiving all of the discounts available to you. Many insurance companies offer discounts for safe drivers, drivers over 25, and drivers that have more than one policy with the same insurance company.

If your insurance company can’t lower your car insurance policy any further, consider using an insurance comparison tool to compare the rates of other insurance companies.

Different insurance companies have different rates for their policies. This means that you may be able to find more car insurance for less money.

  • Lower your car insurance
  • Raise your deductible
  • Make sure you are getting your discounts
  • Use a comparison tool to check the rates of other companies

In order to keep your car insurance valid, you must pay your premiums, which is the amount of money you pay to your insurance company. If you can’t afford your insurance premiums or think you are paying too much for your auto insurance, you should use an insurance comparison tool to view several policies from several different carriers to determine if you are being overcharged. If you find a policy that is more affordable, consider switching your policy. Start comparing car insurance rates now by entering your zip code in our FREE tool below!