The value of good automobile insurance sometimes doesn't become apparent until you really need it. For example, if you buy only the limits the state requires and hit almost any new car your insurance may not be enough to cover the damage.
Choosing the right automobile insurance can be confusing. There are various liability limits and other coverages to choose from so it is easy for some consumers to make simple mistakes. Sometimes for only a few more dollars you can purchase limits high enough to cover you in most accidents.
Some factors may affect your rates.
While criteria may vary slightly from company to company, determining factors fall into four basic categories.
- You - Your age, gender, marital status, driving record and record of prior claims play a major role in determining the premium you will pay.
- Where you live - Living in an urban area typically triggers higher rates due to increased incidence of theft and accident claims - both of which are statistically higher in and around cities.
- Your vehicle - The type of vehicle you drive greatly affects the rates you pay. Those vehicles that have a high frequency of claims (sports rated vehicles) or are expensive to repair (luxury cars, SUV's) usually generate higher premiums.
- How you use your vehicle - The more miles you drive the greater chance you have of being involved in an accident. High annual mileage will result in higher premiums. Business use may be substantially higher and depending on the kind of business and use, you may require a commercial auto policy.
Another way to reduce your premium is to increase the amount you self-insure by increasing the deductible amounts on the physical damage coverage for your vehicle.
Some Discounts may be available:
- Multiple auto
- Multiple Line (Home, Auto, life)
- Passive restraint
- Anti-Theft device
- Good student & Driver Training
- Accident free
- Air Bags
- Low Mileage
- 4 Door