What Factors Affect Your Car Insurance Premiums?

Insurance Blog

Car insurance, like health insurance, helps to protect you financially from unprecedented incidences or experiences. While having auto insurance will ensure you're protected from all possible risks, you need to think about the cost of your car insurance policy. Here are some factors that affect your auto insurance policy.

Your Driving Record

One of the factors that affect your automobile insurance rates is your history of at-fault accidents and traffic violations. Insurance companies will examine your driving history for the last few years. If you have been involved in an accident or have been booked several times, your car insurance rates will be high.

If you have a history of DUI convictions or traffic violations, it will be difficult for you to find an insurance provider. If you fail to get coverage, you'll have non-standard car insurance. This type of insurance is for risky drivers.

Your Insurance Coverage

The amount of coverage you buy affects the cost of your premiums. If you have more coverage, you'll pay more. A basic car insurance package has liability coverage that protects you and comprehensive and collision coverage that protects the vehicle. If you buy the minimum automobile insurance required in your state, you're free to choose the type of insurance you want. This is a great way to reduce your costs. 

For instance, if you have an old car, it's probably not worth a lot. You can save on insurance coverage by eliminating or minimizing the amount of comprehensive and collision coverage. This is because if an accident involves an old vehicle, this coverage will not pay enough money to match its cost. 

Therefore, you can save money you would use for comprehensive and collision coverage toward other expenses like buying a new car. Another way to save on your insurance coverage is by eliminating unnecessary coverage like reimbursement for rental cars or road assistance.

Your Limits and Deductibles

A limit is the most your policy will pay when you incur a loss. Each coverage in your auto insurance policy has a limit, and you can adjust it to meet your needs. The more coverage you purchase, the higher your premiums will be.

Your deductibles also affect your insurance premiums. This is the amount you'll incur out of your pocket before the insurance comes to pay the rest of the total loss—the lower your deductibles, the higher your automobile policy and vice-versa. 

Apart from saving on insurance premiums with the above points in mind, you should also not settle for the first insurer you find. It's advisable to compare quotes from different insurance providers. This way, you'll get the best possible rates. 


9 November 2021

Auto Insurance:  Even High Risk Drivers Need It

About ten years ago, my auto insurance was cancelled. This took place after one too many accidents. I was now a high risk, and my provider was not willing to keep me on any longer. Since there was no way that I was going to get behind the wheel without coverage, I started checking out plans with high-risk insurers. Some were not all that great, but others offered benefits that were very close to my old plan. I soon found a provider who would accept my application, and I began to be a little more careful with my driving. If you are having trouble buying auto insurance, let me help. I'll tell you what to look for in a high-risk provider, and how to find the best one in your area. In no time at all, you'll be covered and ready to get back on the road again.