Nearly all states expect drivers to have an auto insurance policy or other proofs of financial responsibility. Types of mandatory coverage can be different because every state has its regulations that govern insurance and coverage limits. Fiscal responsibility means you have enough assets to pay claims in case you cause accidents, property damage, and injuries to other people. Failing to comply with state’s regulations may result in fines, driver license revocation, and jail time. For new drivers or those who want to purchase auto insurance for the first time, there are some basic things to understand.

How does insurance companies determine rate?
Many factors affect your insurance rate. Insurance companies use their formula to calculate premium, so the rate from insurer to insurer can be different. It is best to acquire quotes from multiple companies and purchase from one that suits your needs. Some of the factors, the most important, that affect auto insurance premium are:

  • Driving record: involvement in accidents or traffic tickets can increase premium rate.
  • Address: some neighborhoods have a high criminal rate, and this leads to more premium.
  • Age: teen drivers lack experience while a senior driver has hearing or vision disturbances. Each issue makes a driver prone to accident.
  • Car Model: sports car or luxury car is expensive to repair, meaning more premium to cover damage
  • Types of coverage: some types of coverage are optional such as Comprehensive and Collision. Purchasing additional coverage adds the total price.

How much insurance do I need?
An insurance agent helps to determine your needs for auto insurance. Depending on your financial circumstance, an agent can add or omit several types of coverage to save money. Some companies offer captive agents who represent the insurers and can be persuasive. Praetorian Insurance Company encourages consumers to work with independent agents to get objective assessment on what they need without purchasing additional coverage.

How to avoid expensive premiums for teen drivers?
According to National Safety Council, traffic crashes are the leading cause of teen fatalities in the U.S. Both driving experts and insurance professionals agree that parents can play big roles to keep their teenagers safe on the road. Praetorian Insurance Company has several tips to help parents protect their teen drivers:

  • Be active parents and monitor your teenagers’ driving habits.
  • Check vehicle conditions often, so you can prevent accidents from car issues such as flat tire or error navigation. Anything that can lead to dangerous driving must be absence.
  • If your teenagers had an accident that resulted in minor damage, do not make a claim but repair it out of your pocket. An inexpensive replacement is better than having to pay a premium surcharge.
  • Put your teenagers in a safe vehicle.

What is a safe car?
Manufacturers offer exotic cars and various features such as full stereo, big engines, sharp design, bright colors, and good performance. A safe vehicle has enough safety features to prevent major injuries in case accident happens. According to Insurance Information Institute, there are six things to consider when purchasing new car including:

  • Structural design: there is no tubular steel roll cage in road cars, but, at least, they have a high front and rear ends to absorb impact during a crash and minimize a risk of injury.
  • Crash test score: the Insurance Institute for Highway Safety and many independent car review websites list car models and their crash test score. The safest car is one that performed best during the test.
  • Safety features: some car models include safety features as standard while others are optional. Anti-lock brakes help drivers to keep steering control when braking too hard. Daytime running lights make your vehicle more visible on the road.
  • Driving experience: when choosing a car, make sure it suits driver’s experience. Safer car is better for teenagers.
  • Restraint system: airbags, seatbelts, and head restraints are must-have features to protect drivers and passengers from injuries in case of road accidents.

How to reduce premium?
The most obvious method is to take advantage of discounts. Most insurers reward their customers by reducing the premium rate if they meet specific eligibility requirements. Praetorian Insurance Company offers FlexAuto program to encourage customers to improve their driving skills and be eligible for discounts. The program applies mandatory and optional coverage including Bodily Injury Liability, Property Damage Liability, Personal Injury Protection, and Physical Damage (Comprehensive and Collision). It also refers to coverage that provides financial protection in case you have accidents with other drivers who have no insurance or not enough insurance.

Determine the discount you deserve, the company checks for tickets in driving record. Clean record without tickets gets more discounts than clean records with a ticket. Because your skills improve over time, you can receive huge discounts. Besides for driving record, FlexAuto offers Good Student Discount, Passive Restraint Discount, Multi-policy Discount, Violation Free Discount, Proactive Consumer Discount, and Longevity Discount. Another real advantage is Accident Forgiveness Program, which waives premium surcharge even when you have tickets for an accident. This discount applies, at least, four years of continuous coverage with the company.

Auto insurance premium varies between individuals, although they drive the same vehicles and live in the same neighborhood. Working with an insurance agent makes things easier because you get recommendations about coverage and suggestions on how to be eligible for discounts. Independent agents charge for the services they provide, but this additional expense relieves you from the hassle of finding the best company, choose the best coverage, and file claims from time to time.