by 
The Curious Bag
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An auto insurance premium is the money that you send to your auto insurance company on a regular basis, in order to be covered by one or more of their insurance policies.
Preparation
Auto insurance premiums are an important part of your auto insurance coverage. There is a lot to know about your premiums and how they are affected by your chosen coverage options.
Types
There are generally three payment options for auto insurance deductibles---smaller monthly payments, one large payment to cover you for the next six months, or one larger, annual payment.
Significance
You payments are calculated by taking into consideration the coverage options and deductible that you chose. This amount is then broken down into six monthly payments, if you asked for monthly premiums.
Considerations
Choosing a bigger deductible can help lower your auto insurance premium costs. Lowering your deductible will raise your premiums.
Benefits
Paying your auto insurance premiums ensures that your insurance company will pay for any claims that you make that are covered under your insurance policy.
Warning
Your future auto insurance premiums may increase after you file a claim. This chance increases with each claim filed, though every situation is different.
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