What factors can cause my automobile insurance premiums to go up or go down?

Your automobile insurance premium in Las Vegas, NV is based on many factors. These factors may cause your premiums to increase or decrease. Some of these issues you can control and some you cannot. Once you understand what affects your rates, you may be able to have better control over your costs.

Increase in premiums

If you add a new car to your policy and increase the coverage, your rate will increase. The same thing applies if you add a new driver or lower your deductible. However, these are only a few of the factors. If you are involved in an accident, and you are found to be at fault, your premium will most likely increase.

You should expect to see significant increases if you receive citations for moving violations. This means speeding tickets or other infractions. A ticket for parking incorrectly will not normally increase your rates. Insurers can also increase the rates of a group in entirety. This is not something that you have control over.

Decrease in premiums

You can often see lower premiums if you maintain a superior driving record for several years. Rates can also change as you change age groups or marital status. If you combine an auto policy with a homeowners or rental plan, you might receive a discount. Removing collision or theft protection or increasing your deductible can also help your lower your premium cost.

Your automobile insurance premium is based on the amount of risk the company has in insuring you. We are your independent insurance agency for the Las Vegas area and we want to help you have the right amount of insurance for your needs. You can compare quotes from several insurance providers online to see the costs and coverage available. If you have questions, we will be happy to help you.

I have an old car of a car that isn’t worth much — do I really have to buy auto insurance?

The age of your vehicle is only an issue when it comes to collision insurance. The majority of states require drivers to have some form of liability coverage. Once you understand the difference between collision and liability insurance, you will understand the type of protection you need.

Collision Insurance

This type of auto insurance covers damage to your vehicle. If you were involved in an accident, the insurance would help you in paying for repairs. Collision insurance is normally required if you have a loan for your vehicle. However, it is required by the lending agency, not by the state. A comprehensive policy would also protect you if your vehicle was stolen or otherwise damaged.

If you own an old car, carrying the extra insurance may not be in your best interest. For example, if your car has a value of $600 and you have a $500 deductible, you would only receive $100 if your car were totaled. However, even if you do not have a loan, if you drive an expensive vehicle the extra insurance is a good idea.

Liability Insurance

Liability is the coverage designed to protect other drivers, property owners or passengers in your vehicle. Virtually all states require that you have a certain amount of insurance in the event that you damage another vehicle or cause property damage or bodily injury. The amount varies by state and some states accept financial bonds as proof of responsibility.

If you are in a state that requires insurance, not having it can subject you to fines and penalties. You could lose your license and potentially serve jail time. You also subject yourself to the possibility of a lawsuit that could wipe you out financially.

You can use our online comparison service to get quotes from multiple insurance providers. We do not want you to be caught without the auto insurance you need, even if you own an old car. Contact us and let us help you with your insurance requirements.