Car insurance rates are influenced by several factors, including your age, driving history, location, type of vehicle, and how often you drive. Insurers also consider your credit score, previous insurance coverage, and any claims history to determine the risk of insuring you.

You can lower your premiums by maintaining a clean driving record, bundling your car insurance with other types of insurance (like home insurance), increasing your deductibles, and asking for discounts such as good driver discounts, multi-car discounts, or low-mileage discounts. Installing safety features in your car can also help reduce costs.

Liability insurance is required in most states, but “full coverage” (which typically includes collision and comprehensive coverage) may be worth considering if you have a newer or more expensive vehicle. If your car is older and less valuable, liability insurance might suffice, but it’s important to assess the risk of not having full coverage in case of accidents or other damage.

After an accident, ensure everyone’s safety, call emergency services if needed, and exchange information with the other driver(s). Take photos of the damage and gather any witness statements if possible. Then, notify your insurance company as soon as possible to start the claims process. Make sure to have details of the accident ready when filing the claim.

The premium is the amount you pay regularly (monthly, quarterly, or annually) to maintain your insurance policy. The deductible is the amount you must pay out of pocket before your insurance covers the rest of the claim amount for damages. Generally, choosing a higher deductible will lower your premium, but it also means paying more if you need to file a claim.