The type of coverage

The coverages you choose may affect the cost of your car insurance premium. Most states have some auto insurance requirements, typically involving liability coverage. Coverages that are also typically included in a car insurance policy are comprehensive coverage, collision coverage, uninsured/underinsured motorist coverage, and medical payments or personal injury protection, depending on the state. There are also optional protections you may want to consider such as roadside help if you car breaks down, cost of transportation if your car is damaged, and custom equipment on your car.

Your limits and deductibles

A limit is the maximum amount your policy will pay toward a covered loss. Typically, each coverage in a policy has its own limit, and you may be able to adjust it based on your needs. You'll likely find that the more coverage you purchase, the higher your premium may be. Your deductible — the amount you agree to pay before your insurance kicks in to help pay for a covered loss — also plays a role in the amount of your premium. Generally, you may find that setting a higher deductible means you'll pay less for your policy.

Your insurance provider can help you decide which limits, deductibles and coverages are right for you. They can also help identify any discounts for which you may qualify.