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How does car insurance differ from other types of coverage and why is it so important for drivers?

Car insurance differs from other types of coverage in the following ways:

It is important to have the correct coverage that protects you and your family from things that you are not planning for so that you do not lose everything you have worked so hard for if something happens.

How should drivers balance risk management and affordability when it comes to car insurance?

All insurance is a risk transfer, but you should always look at what you are comfortable paying for out of pocket if you are involved in an accident (deductible or max amount of liability) and how much savings is it to increase or lower that amount. When balancing risk management and affordability, see if your carrier provides discounts for things like different driving classes, telematics, how far you are driving each day and what safety features you have on your car.

What can consumers do to better educate themselves on car insurance policies, coverage and pricing?

The most important part is knowing what coverage you have. Also, check for liability, deductibles, rental car coverage, whether you can transfer over to other cars you may be driving and whether you will have coverage if you rent a car that is a lot nicer than your current one.

Auto insurance premiums are set based on a variety of information such as driving record, location and credit history. What challenges do consumers face in this type of pricing structure? How can drivers meet or manage these challenges?

You have to consider the type of car you are driving. See how hard or easy that car is to get parts for and how often that car is stolen. People have to manage their risks like not driving after drinking, slowing down when the conditions are not the best and turning the phone on DND to prevent distractions.

Tickets and accidents stay with you for three-five years, but you can do a few things to help, including taking some driving classes if you do get a ticket, carpooling with people, etc.

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Justin Staebler

As Senior Vice President, Personal and Life Insurance, Justin is responsible for the team of advisors who provide home, auto and umbrella insurance, along with life, disability and long-term care solutions. He and his team are dedicated to helping individuals manage risk and protect what is most important to them.