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Factors You Didn’t Know Were Affecting Your Auto Coverage

Auto Coverage

There are many factors that can impact how much auto coverage you receive and how much insurance premiums you have to pay. Your demographic features, driving habits, type of coverage, and your car type, as well as deductibles and limits, all influence your auto coverage.

You may try to eliminate or reduce the amount of coverage you receive in order to lower the premiums on your car, but there are also other factors that affect the cost you are paying. Instead of decreasing the coverage, you can focus on accounting for other factors to reduce your premiums.

The Car
There are some cars that can cost you more to insure, which may result in you choosing less auto coverage. Try going to cars that cost less to insure. If your car has security features built into the model such as anti-theft, anti-lock, and trackers, you can get greater discounts on the premiums.

Driving Habits
Your record of driving will also dictate your coverage options. If you have had multiple accidents in the past, you will definitely end up paying more than someone who has a clean record. If you are an inexperienced or new driver that has never had insurance before, you will also most likely pay more.

The insurance cost also depends on how much you drive, which can impact your coverage options. If someone has a long commute to their workplace, they will pay more than someone who only takes the car out to run errands. The more miles you drive, the greater the exposure to risk.

Demographic Factors
The area you live in and park the car in can also affect the car premiums you have to pay. Urban centers have higher accident rates as well as far more vandalism and theft than rural areas. You may be forced to reduce auto coverage to make up for the increased premiums.

Your age and gender could potentially be a factor too. Younger drivers often have to pay more insurance than experienced drivers.

Types of Coverage, Deductibles, and Limits
The type of coverage you choose can dictate how much coverage you receive. A lot of states require car insurance due to liability coverage. You can also choose between collision coverage, comprehensive coverage, motorist coverage, personal injury security, or medical payments. You can also opt for add-ons like rental reimbursements, towing costs, and sound systems. It depends on which coverage you go for.

The limit dictates the maximum coverage you receive for a loss. You can adjust this according to your needs, increasing or decreasing the coverage as you like –more coverage means more premiums! The deductible is the amount you have to pay when the insurance kicks in.

If you are unsure about how much auto coverage you should be getting, we can help! Give us a call today at 859-317-2217, or email