.A basic auto insurance premium is the amount you pay to your insurance company on a regular basis, often monthly or every six months, in exchange for insurance coverage. Once you have paid your premium, your insurer will pay for coverages detailed in the insurance policy, such as liability and collision coverage.Here are the top seven things to consider when it comes to car insurance:Your budget.The coverage you need.The car you drive.Your driving record.Your credit rating.The state in which you live.Whether you qualify for a discount.