by 
The Curious Bag
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Auto insurance is an insurance policy that helps protect drivers against financial loss in the case of a vehicular accident, property damage or even personal injury to themselves and others. How an insurance company assigns a premium to a driver though is a complicated process.
Premium
An auto insurance premium is the amount of money that a person will pay for auto insurance coverage annually.
Risk
Auto insurance premiums are charged based on the risk of the driver. The higher a risk that a driver poses, the higher an auto insurance premium they'll have to pay.
Factors
A number of factors figure into determining a premium. The age of the driver, their driving history, where they live, and other facts all play a part in determining the rate.
Better Premiums
To get better premiums, a person will have to move out of a risk group. Moving from a city to the country, establishing a good driving record and growing older all help lower your rates.
Legal Premiums
Each state has laws that govern what sort of premiums can be charged, and under what conditions they can be increased by an insurance company.
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