YOU ASK:

What is the definition of Auto Insurance Premium?

WE ANSWER:

Auto Insurance Premium refers to the charges levied by the insurance company in exchange for auto insurance coverage. The premiums may change from company to company, as well as customer to customer.

A number of factors are taken into consideration when computing for the auto insurance commission. This includes previous loss experience (whether the driver has a record of vehicular accidents that the company paid for), the model and make of the car, the driver's driving record (including the years he has been driving), and so on.

The premiums for those who have already made costly claims will be higher than those who haven't made a claim at all.

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