Factors Affecting Home and Auto Insurance Premiums

Homeowners Insurance:

• Type of coverage: Insurance that covers more types of damage is naturally more expensive to provide.
• Deductibles: Policyholders who choose higher deductibles assume more of the risk, and as a result, have fewer and/or less costly claims.
• Discounts: Shatter-proof glass, impact-resistant roofs, modernized electrical systems, home-security systems or sophisticated fire alarms make a home a better risk.
• Fraud: Some customers and contractors inflate repair costs, create the problem that causes the claim, or report damage that never happened. Insurers must account for these unnecessary costs when setting rates.
• Location of dwelling: The severity of weather varies throughout Texas, affecting the number of insurance claims.
• Type of dwelling: Homes built from brick are less prone to weather damage, while some foundations are less prone to water damage.
• Proximity to fire stations: The ability to receive fast response to property damage and natural disasters can help reduce repair costs.
• Claims history: Policyholders who file fewer claims are considered better risks.
• Credit information: Certain credit characteristics can help insurers better predict the number of claims a policyholder may file.

Automobile Insurance:

• Type of coverage: Insurance that covers more types of damage is naturally more expensive to provide.
• Deductibles: Policyholders who choose higher deductibles assume more of the risk, and as a result, have fewer and/or less costly claims.
• Discounts: Anti-theft devices, daytime running lights, anti-lock brakes or airbags can result in smaller claims. In addition, student drivers with good grades, drivers who have not had an accident or moving violation in several years, or drivers who drive a lower-than-average number of miles per year may be eligible for discounts.
• Type of vehicle: Cars with greater horsepower often cost more to insure. In addition, certain cars are more likely to be stolen, more susceptible to damage, or more difficult to repair.
• Age of driver: Younger drivers pose a greater risk for collisions.
• Gender of driver: Women tend to have fewer collisions than men.
• Driving history: The number and severity of collisions and moving violations.
• Crime: The likelihood of an auto theft or vandalism can vary by neighborhood.
• Credit information: Certain credit characteristics can help insurers better predict the number of claims a policyholder may file.

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