If you drive a car, auto insurance is an essential expense. In addition to being required by law, this coverage will shield you from major losses in the event you get in an accident. However, the cost of your car insurance premium can vary depending on a variety of factors. As you compare quotes, here are some of the biggest factors that influence auto insurance rates and what you can do to keep your coverage costs down.

A Guide to Car Insurance Premium Rates

Coverage Type

Minimum liability coverage—to cover property damage and medical injuries you’re responsible for—is the most affordable. If you want additional coverage, such as collision and comprehensive auto insurance to protect your own property and injury risks, you’ll have to pay a higher premium.

Vehicle Type

If you’re opting for collision and comprehensive coverage, the value of your car will influence your rate. For example, it would cost less to cover an economy compact car as opposed to a luxury vehicle.

Driving History

Having a history of auto accidents or being an inexperienced driver can significantly increase your rates because your profile presents an increased risk that you may get into a collision.

Location

People who drive in busy metropolitan areas present a higher risk to auto insurers due to the increased traffic they experience. As such, you might find that your rates are higher if you live or work in a city as opposed to a rural area.

Commute

The more time you spend on the road, the more likely you are to get in an accident. For this reason, providers typically impose higher premiums on individuals who commute long distances.

Deductible Amount

When you make an auto insurance claim, you will have to pay a deductible before your carrier starts providing coverage. The lower your deductible, the higher your premium will be.

How Can You Reduce Your Auto Insurance Rates?

Work with your insurance agent to build a policy that suits your coverage needs and budget. You can save by switching to a minimum liability policy or raising your deductible. Your agent can also introduce you to other discounts that can reduce your premiums—such as those that apply to safe drivers and good students. You might also save by bundling your car and homeowner's insurance under the same provider.

 

When you want to minimize your auto coverage costs, Cundiff & Company Insurance will provide the personalized insight you need. Serving the Somerset, KY, area, this insurance agency will review your risks, budget, and discount opportunities to devise a policy that optimizes your coverage while keeping your expenses down. As an independent agency, this team can also compare rates from many nationally-recognized providers to ensure you’re getting the best deal. Visit this insurance company online to learn more about their solutions or call (606) 679-8379 to request a custom quote.