Auto Insurance Deep Dive

Auto insurance is not only required by law, but it is also too risky to not have! There are many types of coverage and options - evaluate which type make the most sense for you.   

1. Shop around and compare. Insurance premiums vary by company, so do your research to find the best rates. Each insurance company uses its own formula to assess the risks it takes covering drivers. Based off this calculation, insurance companies decide what you pay for coverage. This means no two companies will have identical prices for the same policy and the difference can be hundreds of dollars.

2. Do not let your policy lapse. Allowing your policy to lapse, either between switching companies or between renewing your policy, can cost you. If you plan to switch companies, make sure to have the new policy in place before you cancel the original policy or it expires.

3. Many things influence your insurance rate. Your age, gender, history of accidents or violations, and even your credit history can all affect your rate. 

4. Take advantage of discounts! Ask about discounts that insurance companies offer. Discounts for clean driving records, car safety features, anti-theft devices, electronic payments, payment in full, completion of an adult or high school driver’s education training course or even and driving under a certain number of miles each year are all discounts that companies may have available.

5. The car you drive affects your rate. Most insurance companies use accident statistics and data to determine which vehicles will have higher rates. For example, if the car you drive is very expensive to repair, the company is going to have to pay more if you get in an accident, which will drive up the cost of your policy. Conversely, if the car you drive is less expensive to fix if you are involved in a crash, your policy could be much cheaper. In addition, if your model of car is generally less likely to be stolen, your policy will likely be less expensive than if you drove a vehicle with a track record of being stolen frequently.

6. The type of coverage you have impacts the price of your policy. Of all the coverages that you are required to have by law, liability insurance is typically the most expensive. After purchasing liability insurance, there are many other options that you can add to your policy based on what makes the most sense for you and your family- such as collision insurance or comprehensive coverage. Remember, if your car is financed most institutions require full coverage to be maintained until the loan is paid off.

7. Higher deductibles can lower your premium. Just like medical insurance, if you agree to pay for a larger portion of your own damages by raising your deductible, you will usually have a lower premium. If you decide to increase your deductible to save money on your monthly car insurance payment, be sure that you can afford to pay the deductible if you have to make a claim.

Talk to a professional about your specific needs. To learn more about insurance, visit Through our relationship with TruStage, Rogue Credit Union Members may enjoy a discounted insurance rate just for being a loyal member.

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