Did you know that the premiums for automobile insurance are vary depending upon a number of different factors? Below are some of the reasons why insurance rates and premiums may differ:
Obviously, the type and limits of the insurance policy you choose will impact how much you pay for your auto insurance premium. Too, the different areas of coverage on your policy as well as your deductible will impact your payment. Generally, the higher your deductible and the lower your coverage, the less you will pay for your insurance premium. While Utah’s laws require insurance coverage, the minimum policy amount they mandate is a $25,000.00 – I recommend obtaining higher limits. If you are involved in a serious automobile accident, the mandatory state minimum may not be ample coverage to address injuries. You don’t want to suffer a serious accident and also have to deal with insufficient insurance coverage.
The type of vehicle you drive may also impact your insurance premium. Vehicles with higher safety ratings will probably bring a lower premium than vehicles that do not have the highest ratings. Another factor that may come into play is where you live. If you live in an area that has a high crime rate and vehicle thefts, your insurance premiums may be more than those who reside in rural areas. Your age, marital status, and credit rating typically impact insurance premiums as well. This is due to the fact that collision rates are higher for those who are 25 years old and younger, specifically single males.
It goes without saying that your driving record will be considered when the insurance company is determining your insurance rates. If you have a clean driving record – free from speeding tickets, moving violations, automobile accidents, and insurance claims – your rates will probably be lower than someone who has these types of incidents on their driving record.
Speak with your insurance agent and explore options to try and lower your insurance premium. Often, insurance companies will provide discounts for good students, clean driving records, and coverage for multiple vehicles. Again, although it may be cause for a reduced rate, lower insurance policy coverages may not be the best option. Also, when speaking with your agent be sure to discuss personal injury protection, property damage coverage as well as uninsured and underinsured policies. Once you have all of the information regarding coverage available to you, you will be able to make an informed decision as to the policies you choose and the limits you desire.
