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.