Selecting the right auto insurance policy is important. You don't want to spend too much money. At the same time, it's unwise to not have sufficient coverage of potential property losses and legal liability. Knowing what factors determine the right policy for a motorist can help drivers save money and have greater peace of mind. When you consult with an agent, think about these three factors.

Daily Average Driving Miles

Every mile that a car is on the road is a risk. Your car passes more vehicles, animals, and pedestrians that can all precipitate accidents. Also, every additional driver is potentially an uninsured motorist who could hit your vehicle.

On the bright side, though, these are insurable risks. If your daily average driving miles go up because you take a job in a different part of the area, for example, you should talk with your agent as soon as possible about redrafting your policy. You may need more coverage to address the inherent risk of being on the road for longer distances and times.

Local Driving Risks

The terms of your automobile insurance policy should also address some of the local risks. If your work commute takes you through a busy downtown with lots of stop-and-go traffic, there's likely a higher risk of a fender bender. Similarly, someone who drives through the suburbs or country a lot may be exposed to a greater risk of hitting a deer. Vehicles parked in certain areas have higher theft risks. You want to be sure that your policy will cover all of the risks you face.

Covering the Deductible

A big factor in deciding how much you need for auto insurance is the deductible. This is the portion of the damage and liability that the driver must pay before the insurer will kick in even a dollar. A high deductible usually comes with a lower rate, but that means you have to pay more before the insurance company covers anything. Deductibles exist to discourage drivers from claims things like paint scratches because tiny claims would cost the insurer too much.

You never want to carry a deductible that's lower than you can afford to pay out of pocket. If you don't usually have enough in the bank to cover something like a $1,000 deductible, then the smart move is to pick a lower amount. Conversely, if you know you have the money to cover a high deductible, you might go in that direction in exchange for a lower monthly automobile insurance rate. 

For more info about automobile insurance, contact a local company.