If you own or operate a vehicle in Missouri, you are required by state law to have a minimum level of car insurance to protect against damages you may be liable for. But while auto coverage is an asset that every driver needs to have, it can be difficult to navigate when you’re new to the process. To help you get the most out of your auto policy, here are a few answers to common questions that consumers have when shopping for coverage.

What Are the Main Types of Coverage?

Liability

This is the minimum amount of car insurance required by the state to cover any damages you cause. Current laws state that all drivers must have at least $25,000 per person/$50,000 per accident in injury coverage and $25,000 for property damage.

Collision

If you’re involved in an accident, collision coverage pays for repairs or a replacement of the vehicle according to current Blue Book rates. Collision is optional, but it may be required if you’re leasing a car.

Comprehensive

Comprehensive covers damages that result from incidents other than on-road collisions. For example, it can pay for losses caused by theft, fire, falling tree branches, or vandalism. Like collision coverage, comprehensive car insurance isn’t required but may be necessary if you lease a vehicle.  

What Are Premiums & Deductibles?

The premium is the amount you’re responsible for paying each month to maintain active coverage. The deductible is what you’d have to spend on a claim before insurance coverage kicks in. Typically, opting for a higher deductible will get you a lower premium and vice versa.

How Are Rates Determined?

There are a variety of factors that your insurance company may use to measure the risks associated with your policy—and the premium rate you’ll have to pay for coverage. Some of the most important ones include age, gender, driving record, vehicle type, location, vehicle purpose, and average commute.

These rates are not set in stone. If you get in accidents that result in claims, for instance, your premium may increase for a specific period.

Can I Get a Lower Rate?

Before you decide on a policy, it’s a good idea to shop around and get quotes from various providers to see who offers the coverage you need at the best price.

You should also discuss discount opportunities with your insurance agency. Bundling policies and getting good grades, for example, can entitle you to a noticeable price-cut.

Whether you’re a new driver or a skilled veteran of the road, Mitchell Insurance Agency LLC will help you get the coverage you need as a driver in Texas County, MO. Preparing policies from many different carriers, this agency will connect you to options that comfortably address all of your concerns at a price that fits your budget. To learn more about their products—including homeowners and business insurance—visit this local provider online. For a free car insurance quote, call (417) 967-2140.