What Defines Your Auto Insurance Premiums?

All drivers in Pismo Beach, CA, are legally required to have insurance for their vehicles. However, some may be confused about what affects their premiums. Neff & Associates Insurance Services Inc is here to give you a few common factors that can affect auto insurance premiums for your car.

Type of Car

There are types of cars that will cost more to insure because of their basic components like the engine’s cubic capacity. 

The Vehicle’s Age

It is more costly to insure a newer vehicle than an older one. This is because an older car has depreciated in value due to wear and tear, whereas a new vehicle still has the current market value, making it costly to insure.

The Type of Coverage

There are different types of coverage, like liability, collision, and uninsured/underinsured motorist coverage. They all have different costs and whichever you choose automatically affects the premium you will pay.

Your Driving Record

A person who has been in several car accidents in the past is likely to pay higher premiums than one with a clean record of driving. New drivers who have not had insurance before are also likely to pay more for their car insurance.

How Often You Drive

Most insurance companies consider how often you use your car.  Someone who uses their car once in a while, maybe on the weekends for family road trips, will pay less for insurance compared to one who commutes in their vehicle to work daily. With more miles covered behind the wheel, the risk of exposure is high.

Age and Gender

A driver’s profile also affects their car insurance premium. For instance, a young driver with less experience usually pays more for car insurance than older drivers.

If you reside in Pismo Beach, CA, it is good to be informed about what factors affect your insurance premiums. To learn more about auto insurance premiums, reach out to our team at Neff & Associates Insurance Services Inc. for assistance.

How Umbrella Insurance Protects You

When you have insurance policies for your home and vehicle, you may know that they each carry an amount of liability protection for you. However, if you were to look at the numbers, you may find out that they offer very little in the way of this protection. If you are not well covered by your liability coverage through these two policies, you may need an umbrella insurance policy. Talk to an agent about these policies by calling us at Neff & Associates Insurance Services Inc in Pismo Beach, CA.

Protecting Your Finances

If there were to be an accident in your vehicle or on your property, you can be held liable for it. If this happens, you will owe for the medical and repair bills that are caused by the accident. Your home and auto insurance policies each have a stated maximum that they will pay toward these bills, And if it isn’t enough, you are personally responsible for the rest. The solution is to get more liability coverage so that you will be well-prepared in this instance. With a far higher stated maximum, you can get through a major accident without it causing you to go bankrupt.

Umbrella Insurance Basics

Getting liability coverage added to your home or auto policy is often extremely expensive. Umbrella insurance doesn’t interfere with your auto and home policies. Instead, it comes in after those policies have paid their maximum, and then they pay on top of that. Umbrella insurance gives a large amount of liability coverage for a relatively small price. That’s why so many people are getting this type of coverage. 

Get Your Umbrella Policy

To be better covered for liability, call us at Neff & Associates Insurance Services Inc in Pismo Beach CA to find out more about these helpful insurance policies.