Auto insurance is something that every driver needs, yet many people do not completely understand it. Aside from the standard prices and coverage options, there are several surprising aspects of auto insurance that may save you money—or at least help you make better decisions.
- Your Credit Score Matters: Many drivers are unaware that in some areas, insurers use your credit score to calculate rates. A higher credit history frequently results in lower premiums. In contrast, even if you have a clean driving record, a low credit score can cause your rates to rise.
- Certain Cars Are More Expensive to Insure: While you might know that luxury, more expensive vehicles cost more to insure, you might not know that cars with high repair costs, costly replacement parts, or high theft rates frequently require higher auto insurance as well.
- Location Affects Rates: Where you live can have a significant impact on your auto insurance premiums. Urban areas tend to have higher premiums due to increased accident and theft risks, but rural areas frequently have lower rates. Even moving a few miles across town can have an impact.
- Gaps in Coverage Are Common: Many drivers believe that their auto insurance covers everything. However, some plans exclude floods, natural calamities, and aftermarket changes. Understanding your policy’s fine print might help you avoid pricey surprises.
- Discounts Are Frequently Underappreciated: Insurance companies provide numerous discounts, but most drivers do not take full advantage. Discounts are available for safe driving, bundling with house insurance, having low annual mileage, or even having certain safety features in your automobile.
Being aware of these lesser-known facts can help you make better decisions, avoid overpayments, and ensure you have adequate coverage. Contact us today at LaVaughn Rodgers Insurance to learn more.