Carrying a car insurance policy is vital to protecting yourself against the expenses associated with an accident, and it's also mandatory by law. However, the ways insurance companies determine these rates are often unknown by many drivers. By understanding the various components that affect your quoted price, you may be able to find ways to reduce overall costs. Below is a closer look at the different factors that influence premiums.

3 Factors That Contribute to Car Insurance Expenses

1. Deductible

One of the most influential factors in your monthly insurance costs is the deductible. This out-of-pocket expense is only paid when an accident occurs, but a lower deductible often results in a higher payment. Most insurance companies offer deductible options of $250, $500, and $1000. You may be able to reduce your monthly expense by raising your deductible, but be sure that you can easily afford the higher cost in the event of an accident.

2. Coverage Level

Coverage options also affect premiums. Higher coverage amounts are directly associated with premium costs because the potential payouts are higher. You can reduce payments by choosing a lower coverage level, but avoid dropping protection levels below the necessary replacement value of your vehicle. Otherwise, you risk creating a financial burden after an accident.

3. Driving History

Car insurance rates are also affected by your driving history. Factors like speeding tickets and DUI charges can substantially raise premium amounts. The insurance companies look at such instances to evaluate your potential risk for accidents, so the presence of these items results in higher rates. Once you have a mark on your driving record, the best thing you can do is avoid adding any more charges, as well as looking for an insurance provider that specializes in high-risk coverage.

To find an affordable insurance policy, regardless of your driving history, turn to the team at Lafever Insurance Agency in Cookeville, TN. For over 30 years, the independent agency has been dedicated to providing drivers with car insurance policies that match their specific needs. Request your quote today by calling (931) 526-3377, and learn more about their history by visiting them online.