Beyond the Basics 7 Key Points About Auto Insurance

2. Auto insurance can feel like a complex maze! You know you need it, but deciphering the different coverages and understanding exclusions can be overwhelming. However, with the right knowledge, you can navigate the complexities of auto insurance confidently. Let’s explore the 7 key points about auto insurance. 1.Understand How Prices Are Determined Many factors influence your auto insurance premium beyond just the year, make, and model of your car, such as: oYour Driving Record: A clean driving record with no accidents or traffic violations typically translates to lower premiums. oYour Age and Location: Statistically, younger drivers and those living in densely populated areas with higher accident rates pay more. oYour Annual Mileage: The more you drive, the higher the risk of an accident, potentially leading to a higher premium. oYour Credit Score: In some states, your credit score can be a factor in determining your insurance rate. 2.Collision vs. Comprehensive Coverage Collision coverage pays to repair or replace your car if it’s damaged in a collision with another vehicle or object. Comprehensive coverage protects your car from non- collision incidents like theft, vandalism, fire, weather events, and animal collisions. 3.Not All Expensive Cars Cost More to Insure The cost of repairs and the likelihood of theft plays a significant role in determining your premium. A luxurious sports car might be expensive, but if it has advanced safety features and a low theft rate, it might not be as expensive to insure as a less expensive car with outdated safety technology and a higher theft risk. 4.Ways to Lower Your Auto Insurance Premium Here are some ways to potentially reduce your premium: o Maintaining a Clean Driving Record: Avoiding accidents and traffic  violations is the best way to keep your rates low. Taking Advantage of Discounts: Many insurers offer discounts for  good students, low mileage drivers, completion of defensive driving

3. courses, multi-policy discounts (bundling auto and home insurance), and even owning safety features like anti-theft devices or airbags. Raising Your Deductible: The deductible is the amount you pay out  of pocket before your insurance kicks in. Increasing your deductible can lower your premium, but remember, you’ll be responsible for a higher upfront cost in case of a claim. 5.Business Use? Standard Insurance Won’t Do: Your personal auto insurance policy typically doesn’t cover using your car for business purposes. If you use your car for deliveries, ride-sharing services, or any business-related activity, you need a specific commercial insurance policy to ensure proper coverage. 6.Sharing the Wheel? Sharing the Risk If you let someone else drive your car, your insurance policy will likely extend coverage in the event of an accident, as long as the driver has a valid license and your permission. However, it’s crucial to check your policy details and inform your insurance company of any frequent or regular drivers of your car. 7.Lapsed Coverage Can Haunt You: Letting your insurance lapse can have significant consequences. When you need to reinstate coverage, you might face higher premiums due to the coverage gap. Additionally, some states may impose penalties for driving without insurance. Find Tailored Auto Insurance Policies with RMS Insurance Brokerage, LLC At RMS Insurance Brokerage, LLC, our experienced agents can help you navigate the complexities of auto insurance and find the coverage that best suits your needs and budget. Don’t settle for generic coverage. Contact us today for further assistance. Call us at 516-742-8585 for further assistance.