An auto insurance premium is the amount of money you are charged by an insurance company for everything covered under your policy.

The premium you pay for auto insurance is based on the company’s determination of risk, including such things as how frequent and costly potential accidents, thefts and other losses you might have will likely be for them.

An auto insurance premium can be very different from company to company so it is important to shop around every time your policy comes up for renewal in order to make sure you are getting the lowest rate possible for the amount of coverage you are purchasing.

Most auto insurance companies prefer to collect your premium in one installment for six months of coverage. So if you opt to pay your premium in monthly installments, you will often pay a fee as a result.

Auto insurance premiums don’t just vary according to the company where you buy your insurance policy. Your auto insurance premiums will also vary according to:

• The amount and type of coverage you purchase.
• The make and model of the car you are insuring.
• Your driving record and amount of experience on the road.
• Your age and gender.
• Your credit history.
• Where you will be driving the car (where you live, where you work, etc.)
• The number of miles the car is driven per year.