Return to Home Page
Home    |    About    |    Find An Agent    |    Career    |    My Account    |    Contact Us  
View our insurance produrcts.View our Resource Centers for great tips and answers to insurance related questions.Report a claim using online.Find a local Farm Bureau Insurance agent or office.

Insurance Products
Auto Insurance
  Property Insurance
  Life Insurance
  Farm & Ranch Insurance
  Commericial or Businessowner Insurance
  Health & Other Services
Related Articles
  Commonly Asked Questions about Auto Insurance
  What if I'm Involved in an Auto Accident?
  How do I read my Auto Insurance Policy?
  Understanding the Costs of
Auto Insurance
  Your Teen Driver
  Personal Liability Umbrella Coverage
Even Brett Favre can't beat our coverage.

Farm Bureau® Insurance  |  Insurance Products  |  Auto Insurance
Cost of Auto Insurance
How does my auto insurance company decide what it charges me? That’s probably the most asked, least understood question about motor vehicle insurance coverage. Each insurer has rates for each type of car, each driver and every geographical area in the state. Each company also has its own surcharges and discounts available that impact these rates.

1. They need to make enough money to cover all their policyholders’ claims and pay their overhead expenses (staffing, light bill, phone bill, etc.), and if they’re publicly held, still have enough money left over for their shareholders.
2. They want to balance their risk by charging higher rates to drivers who file more costly claims, more often and lower rates to those drivers who file less expensive claims, less often.
3. They want to stay competitive with other insurers in the markets they do business.

Colorado Government Regulations
How your insurance rates are set also depends in part on which state you live in, because rates are regulated on a state-by-state basis. The insurer has to follow the regulations of the state you live in.
[ Learn More ]

Auto Insurance Q&A
Why do things like my age, gender, credit and driving record affect what I pay for auto insurance?
What you pay for insurance is largely based on what kind of risk the company predicts you will be, based on known factors like your driving history, the kind of car you drive, how old you are, your gender, your marital status and where you live. These judgments aren’t just based on instincts or whims. Insurance rates are based on a wealth of statistical data compiled by your company over a long period of time (commonly up to 20 years). Most insurance companies divide auto risks into three basic types:
Preferred (low risk)
Standard (average risk)
Non-standard (a nice way of saying high risk)
Why does it matter what kind of car I drive?
Increasingly insurance companies are basing insurance rates on their claims experience when it comes to the safety record of the make and model of vehicle you are driving. Factors insurance companies may likely consider: crashworthiness, safety features (i.e. airbags, automatic seatbelts, anti-lock brakes), popularity with thieves, cost to repair, age of the vehicle. Every year new cars are separated into various categories according to price by insurers. The number of categories vary from one insurance company to another, but a basic premium is assigned to each price group. For more information on crash testing click here for the Insurance Institute for Highway Safety (IIHS).
Why do my premiums go up if I get a traffic ticket or I’m involved in an accident?
Getting several tickets in a short period of time or being involved in an accident can put you in a higher risk classification depending on the severity of the violation and cost of the accident. However, your rates won’t automatically go up.
Why do auto insurance premiums vary depending on what I use my car for?
Typically, cars are classified based on whether they are used for driving to work, business, pleasure or farming. Cars used primarily for pleasure tend to have the lowest premiums, while cars used for business generally have higher premiums. Insurance companies determine classifications by the number of miles driven per year since the more you drive your car the more likely you are to get into an accident.
What is the average cost of auto insurance?
The average insurance expenditure is calculated by adding all auto insurance premium collected for liability, comprehensive and collision coverages, and dividing by the number of insured cars for the year. This average is based on all policies - including liability-only and policies with optional comprehensive and collision coverage. Limits on policies vary widely and are based on state requirements as well as consumer choice. The average auto insurance expenditure nationwide was $795 in 2007, compared to $829 in 2005.

Source: National Association of Insurance Commissioners.

Would you like to talk to your local Farm Bureau® Insurance agent?  Find an Agent

My Account

Your My Account profile will allow you pay your bills online, report a claim, and view your billing summary for all eligible policies.

Want to Register?

Your My Account profile will allow you pay your bills online, report a claim, and view your billing summary for all eligible policies.

If you need assistance or have questions about this feature, please contact our Customer Support Department.

Mon - Fri  /  8am to 5pm (MST)

The MOBILE Agent is available to download!
Get Social with us!

Join the Farm Bureau® Insurance Family
Are you considering a career in insurance and financial serv-ices? Farm Bureau Insur-ance®* has great opportunities for hard-working, self-motivated, success-oriented individuals.


Looking for a career in the insurance industry?

Find an Agent
Talk to your local  Farm Bureau® Insurance agent today.
Find a local Farm Bureau Insurance agent or office.
Report a Claim
Our Claims Department is one of the best in the state. Ready and eager to get you back on track after an accident.

Please contact the Customer Support Department for immediate assistance.

Mon - Fri  /  8am to 5pm (MST)
Learn more about how to report a claim.
Return to Home Page
Protecting the Colorado Way of Life™ since 1950.
Personal Auto
Commercial Auto

Manufactured Homes
Condo / Townhome
Dwelling Fire

Country Squire
Country Home
Commercial Excess Liability
Other Services
Excess Liability
Financial & Banking
Resource Center
Insurance Review
Keeping You Safe

Copyright © 2011 *Colorado Farm Bureau Mutual Insurance Co.  |  Southern Farm Bureau Life Insurance Company, Jackson, MS
Sitemap    |    Legal    |    Privacy