Though virtually every driver has a policy, not many know how auto insurance works. Knowledge is power, though, and when it comes to vehicle coverage, a little education could save you a lot of money. Along with understanding the specifics of your plan, you should know how rates are determined. Here a few insurance facts to better inform drivers.

5 Valuable Auto Insurance Facts

1. State Liability Requirements Are Rarely Sufficient

Nearly every state has a minimum requirement for liability coverage. However, these amounts aren't always enough to cover the total cost of damage sustained in a collision. If you're at fault for an accident that resulted in $35,000 of vehicle damage but you only have $15,000 in coverage, you'll face $20,000 in out-of-pocket costs. It's much easier to pay a few dollars more a month for better coverage than to come up with thousands of dollars at a moment's notice. Also, liability insurance only covers damages to the other driver’s car, whereas collision and comprehensive policies allow you to recover damages regardless of who was at fault.

2. Your Credit Score Affects Your Rate

Multiple factors determine an insurance rate, and each company places its own degree of importance on each. However, nearly every provider considers a driver's credit score. This decision is based on the idea that low scores signal a tendency toward risky behavior, which translates to more accidents. If you're looking for a lower rate, work to build your score.

3. Vehicle Size & Safety Features Make All the Difference

Larger body styles, like SUVs and trucks, cost more to insure because their size creates more damage upon impact. Safety features reduce the risk of injuries, so providers offer lower premiums in exchange. If you're in the market for a new vehicle, consider a smaller car with a high safety rating.

4. Bundling Reduces Costs

Insurance companies are happy to give a discount in exchange for more of your business. If you're looking for a way to save, ask your agent about bundling your home and auto policies.

5. The Lower the Deductible, the Higher Your Payment

Lower premiums come with higher deductibles, which means you’re responsible for more out-of-pocket repair costs. However, saving money today isn't always worth it tomorrow, especially if you don’t have a lot of savings. Unless you’re confident you could meet your deductible if you got into an accident tomorrow, it’s wiser to purchase a more expensive plan with a lower out-of-pocket obligation.

Auto insurance doesn't have to be complicated. Find the right policy for your budget and circumstances today by turning to Mazzola Insurance in Rochester, NY. As an independent insurance agency, they're able to compare costs and coverage options across a variety of providers to match each client with the most suitable policy. Request your quote today on their website or by calling (585) 266-7130.