How Are Insurance Premiums Determined?

Updated: September 2015

Before you start requesting and comparing residential insurance quotes, you may want to have a good understanding of the basics.

Whether you own a house, condo or manufactured home, you can purchase insurance based on the amount of risk you're comfortable accepting. Every individual has unique situations and circumstances that may influence the decisions they make when selecting a policy. Here are some factors that may help determine what kind of insurance policy is right for you and how much you may pay for it.

Couple talking with insurance agent.

Your Deductible Levels

The dollar amount you're required to pay toward a covered loss — commonly referred to as a deductible — may be a factor in the amount of your annual premium. Typically, your premium will be lower if you select a higher deductible, according to the National Association of Insurance Commissioners (NAIC). If you have a covered loss, the deductible is the amount that you'll pay out of pocket before your insurance benefits kick in.

Your Insurance History

Your prior insurance history can affect the types of coverage you are able to purchase as well as your premium levels. Some factors that may affect premiums are:

  • Frequency of claims
  • Insurance Score (related to credit history)
  • Continuous coverage (few or no periods without insurance)

Your Location

One of the factors used to price policies are the types of claims that have happened in your neighborhood. Things more specific to your home's location, like how close you are to a fire hydrant and whether your area is served by a professional or volunteer fire department can affect your premium, the Insurance Information Institute (III) says. In addition, geographical location, such as proximity to the coast, may also be a factor in your premium, the III says.

Learn about the most common insurance claims in your area..

Get A Quick, Personalized Home Quote Today.

Get a quote >

Having A Dedicated Agent Can Make All The Difference.

Find an agent >

Your Personal Property

Belongings — referred to in most policies as personal property — are covered by typical residential insurance policies. As with other types of coverage, limits will apply. The types and values of your belongings can help you determine how much coverage you should purchase and whether you may benefit from any additional coverage, such as scheduled personal property.

Your Home Type

Type of home you live in may also play a factor in your premium. Square footage, the materials used to construct the home and the age of the building are among the factors that may influence premium costs, the III says.

Regardless of what type of residence you own, insurance may help protect your residence and its contents. A local insurance agent can help you learn more about available coverages and which ones may be appropriate for you.

The availability, qualifications and amounts of these coverages and discounts may vary from state to state. In addition, other terms, conditions and exclusions not described above may apply, and total savings may vary depending on the coverages purchased. In some states, we may offer coverages and discounts that are not listed here. For more information regarding your eligibility for certain coverages and savings opportunities, please contact your Allstate agent.

Get A Quote

Your location is set for:

Ashburn, VA 20147 Edit


Retrieve a saved quote

Agents Near 20147

  • Kristin Mullah
    Kristin Mullah
    44110 Ashbrn Shpg Plz Ste 2
    Ashburn, VA 20147
  • Wendy Moore
    Wendy Moore
    44075 Pipeline Plz Ste 305
    Ashburn, VA 20147
  • Mo Parsay
    Mo Parsay
    44355 Premier Plz Ste 210
    Ashburn, VA 20147
  • Malan Chakravarthi
    Malan Chakravarthi
    20609 Gordon Park Sq Ste 130
    Ashburn, VA 20147
  • Sina Djalili
    Sina Djalili
    42882 Truro Parish Dr Ste 103
    Ashburn, VA 20148
More Agents
ECC Monitor: OK