When you choose your car insurance, you’re most likely to go with a popular insurance provider or choose the company that your friends use, without even doing much research. But since each company has different rates and premiums you should shop around to find the best car insurance for you. To ensure you get the best deal around, below are five things you should fully consider before purchasing car insurance.
1. There are a Number of Factors That Decide Your Rate
Besides the deductible you choose, car insurance providers decide your rates on a number of factors, such as your previous auto history, your age, and your credit score. Take these factors into consideration before choosing to go with an insurance provider.
Your insurance coverage is mandated by the state you’re being insured in. However, most states require only liability insurance, which is coverage for the cost of injury or death to anyone in a car crash that you caused. Vehicle and property damage and legal fees are included as well.
Even though liability insurance is required, you may want to have these coverages as well:
-Comprehensive: This pays for damage to your vehicle from fire, theft, vandalism, and other non-crash incidents.This type of coverage requires you to first pay a deductible.
-Collision: This helps pay for repairs to your car after an accident, no matter the fault. You will have to pay a deductible for this coverage as well.
-Personal Injury Protection: This will help pay for medical costs or lost income to you or any of your passengers if another driver hits you.
-Uninsured/Underinsured Motorist Protection: This is also called UM and UIM, and may be required by your state to have firsthand. This coverage pays for your car’s repairs if it is damaged by either an uninsured or underinsured driver.
If you’ve been in a car accident and need to file a claim, you’ll need to pay a deductible before your insurance provider pays the remainder of the bill. These deductible rates can cost anywhere from $0 to $1,500. You can lower your car insurance premium, or its monthly cost, by raising your deductible amount. At the same time, if you find that you don’t get into many accidents, having a higher deductible can lower your insurance premium and you’ll lower your monthly payments. Be sure to not set your deductible so high that you can never it if you are in an accident.
4. The Car You Have Influences Your Rates
Among other things, the type of car you drive has an effect on your insurance rates. Many people know that insurers consider safety and protection. However, they also consider how much damage your car could potentially inflict on another vehicle. If your car has a larger chance of causing damage to other cars, like a truck or SUV, you may be charged more for liability insurance.
Most car insurance providers offer a range of discounts that people can take advantage of. However, you must ask for them yourself; don’t expect your agent to bring them up. Companies often offer discounts for certain safety features like air bags and car alarms and for good driving records. You can also get a discount by purchasing more than one type of insurance from the same company, such as homeowner’s insurance. Though these are less common, some companies also offer discounts for parking regularly in a garage, owning a hybrid, or even being an alumnus of a certain university. Once you discover which discounts you qualify for, you can ask for them to be applied to your account.
With these five facts in mind, you can more effectively choose the best car insurance provider for you. Now it’s time to begin comparison shopping!