Most people know that tickets, accidents and young drivers in a household can affect auto insurance rates. But insurance companies consider many other factors when determining premiums. Here are a few that may surprise you:

• Insurance history – Maintaining continuous insurance can affect your rate. 
• Prior insurance limits – The amount of liability coverage you have carried in the past can affect your rate.
• Length of time with your prior insurance company – Some insurers consider how long you have maintained coverage with your previous carrier.
• Vehicle type – A vehicle's value, performance, repair costs, theft history and overall loss experience can all affect what it costs to insure.
• Education – Some insurance companies use education level as one of many rating factors.
• Vehicle ownership history – Some insurers consider how long you have owned a vehicle as part of their rating model.

There are many reasons insurers consider these factors, but ultimately it comes down to statistics. These factors have been shown to correlate with the likelihood and cost of insurance claims. That is also one reason rates can vary so much from one insurance company to another—each company weighs these factors differently.

Oregon auto insurance policies are required to include $15,000 of Personal Injury Protection, commonly called PIP. PIP is considered no-fault coverage, meaning benefits can apply regardless of who caused the accident. PIP coverage can apply when you are in or around a vehicle, such as getting out of your vehicle, or while you are a pedestrian. 

Many people assume carrying more than the minimum PIP limit is unnecessary because liability insurance will take over if their medical expenses exceed $15,000. While another driver's liability insurance may ultimately pay when that driver is responsible for an accident, it is not always that simple.

Liability must first be established, and resolving an injury claim can take time. There is also no guarantee that the person who caused the accident has enough insurance—or any insurance at all. Uninsured and underinsured motorist coverage can help in those situations, but those claims can also take time to resolve.

In the meantime, medical bills still need to be paid. Health insurance may help after PIP benefits are exhausted, but most health plans include deductibles, coinsurance and out-of-pocket maximums that can leave you responsible for a significant portion of your medical expenses.

Carrying a higher PIP limit can provide an additional layer of protection by increasing the amount available for covered expenses before you have to rely on health insurance or pursue recovery from another party.

For many people, the additional cost to increase PIP coverage is relatively small compared with the financial protection it can provide after a serious accident.

If you took out a loan to purchase your vehicle, then this is an easy “yes” answer. Nearly all lenders require comp and collision coverage with maximum deductibles of $1,000 (some only allow $500). Comprehensive coverage pays for things that happen to your vehicle while it is parked such as vandalism, theft or a tree falling onto the vehicle. It also pays if you hit a deer that runs into the road in front of you. If that happens, you pay your comp deductible, and then your policy pays the remaining cost of repairs. Comp claims do not count against your driving record in the way a collision claim does. Comp claims are not considered to be your fault. Collision claims are accidents that are determined to be your fault, or at least 50% your fault. Many parking lot accidents are found to be 50/50 where both drivers are responsible for their own damages. In the deer situation, if you swerve to avoid the deer and run into a ditch or a tree, that is considered a collision and is your fault. If you rear end another vehicle, that is also almost always your fault. Collision coverage pays for the cost of repairs to your vehicle or pays the value of the vehicle to you in the case of a total loss. You should carry comp and collision coverage on any vehicle you would like to have help replacing or repairing if something happens to the vehicle.

When you have a trailer hooked up to your vehicle the liability coverage from the vehicle automatically applies to the trailer. That means if you cause an accident and your trailer causes damage, the damage your trailer caused will be covered. However, the damage to your trailer itself is not covered unless you have the trailer specifically insured with comprehensive and collision coverage. When you insure a trailer with comprehensive coverage your policy will also provide coverage if the trailer is stolen. The contents of the trailer are not necessarily covered, but the trailer itself is. Insurance coverage for the contents of a trailer gets a bit more complicated and depends on the kind of trailer and the kind of contents. You should speak to a licensed insurance professional about trailer contents coverage if you have questions.

Customers will often say they have or want “full coverage” on their policy. That is a common phrase in the insurance industry that can be misleading and end up being very costly if you suffer an accident or loss. Many people consider having comprehensive and collision coverage to equate full coverage, but that is not the case. There are many optional coverages and endorsements that must be added to your policy, depending on the carrier, such as OEM parts, towing, roadside service, loan/lease gap coverage, new car replacement, drive other car, and many more. The wrong time to learn about what your policy does and does not cover is after an accident. A licensed insurance professional can help you review your policy coverages and select what is best for you and your situation.

There are several good answers to this question. One reason is that any injuries or damages that are in excess of your liability limits are your personal responsibility; including pain and suffering settlements to injured passengers. If you have certain assets the courts can force you to liquidate those assets to pay for the damages you were found liable for. There is also a certain moral obligation to make sure you’re able to pay for the damages and injuries you cause someone else. Another reason is that you can insure everyone else on the road, up to the same liability limits that you carry yourself, with uninsured motorist coverage. The unit cost for coverage also decreases with higher liability limits. For example, $250,000 in liability coverage is not ten times more expensive than $25,000. The rates vary for each specific person and vehicle, but the cost per thousand of coverage is less with higher limits, like buying in bulk to get the best value.

There is no perfect yes or no answer. The benefit of these options are they effectively spread out the additional insurance costs that would result from an at-fault accident. If the prospect of paying your deductible, and then facing an increased cost of insurance at your next renewal is financially challenging or stressful, then you can mitigate the impact of those expenses by spreading that cost out over your regular payments. The monthly cost of insurance is higher than you would pay without those options, but if you do have an at fault accident your deducible could be lowered to as much as zero (your deductible falls $50-100 every policy term that you do not file a claim) and you will not have the accident surcharge applied to your policy at your next renewal.

No! Standard home insurance policies do not provide coverage for earthquakes or flooding. Some carriers offer earthquake coverage as an endorsement to a home policy for an extra charge. Earthquake coverage is typically close to the cost of home insurance without the earthquake coverage. Flood insurance is written as a separate policy from your home insurance, and is typically required by lenders if your home is in a flood zone. The cost of flood insurance varies greatly based on your flood zone.

If something happens to the utility service lines in the street then the city typically handles the repairs. If something sudden and accidental happens to the utility service lines inside your home then your home insurance typically covers those repairs. If something happens to those lines between the street and your home, like under your driveway or in your front yard, there is no coverage for the repairs without adding the service line endorsement to your home insurance. The cost for that endorsement is usually between $20 to $50.