Factors that affect your rates
In addition to the specific coverage options you select, other factors that affect your car insurance rates include the following:
-Deductible: is the amount of money you pay out of your own pocket if you get into an accident. The higher your deductible, the lower your insurance bill. In general, it is worth considering a deductible of at least $ 500, since damage to your vehicle that reaches less than $ 500 can often be paid without filing an insurance claim.
-Age: Younger and less experienced drivers have higher insurance rates.
-Gender: men have higher rates than women.
-Demographic: people who live in areas with high crime rates pay more than people who live in areas with few crimes.
-Claims: drivers prone to accidents pay more. If you want to keep your rates low, keep the number of claims you file to a minimum.
-Movement of infractions: Speeding and other infractions in movement have a negative impact on your insurance bill. Obey the law to help prevent your rates from rising.
-The choice of the vehicle: sports cars cost more to insure than sedans, and expensive cars cost more to insure than cheap cars. Analyzing the cost of insurance before buying that new car could help you save a package on your car insurance.
-Driving habits: the amount of miles you drive, whether or not you use your car for work, and the distance between your home and work, all play a role in determining your rates.
– Anti-theft deterrent systems: if you have an alarm in your car, you will pay less to insure your vehicle.
-Safety devices: air bags and anti-lock brakes work in your favor keeping you safer and reducing your insurance bill.
-crash prevention training: some companies offer discounts if you take an educational driver training course.
– Multiple policies: if you have more than one car and / or you also have housing or tenant insurance, keep in mind that many insurance companies offer discounts depending on the number of policies you have with them.
-Plan of payment: some insurance companies offer discounts based on your payment plan. Paying your entire annual invoice at once, instead of in installments, can generate a discount.
– Credit score: a good credit reduces the insurance rates of your car. Bad credit increases them. (For more information about this process, see Information on insurance qualification and the importance of your credit rating).
Advice on purchases
When you're in the auto insurance market, you need to make careful purchases. Prices, features and benefits vary widely from one company to another. The minimum coverage requirements also vary. In Florida, for example, the minimum coverage requirements are $ 10,000 for personal injury protection and $ 10,000 for property damage.
In the personal injury department, $ 10,000 does not buy much in terms of medical services if an operation or a prolonged stay in the hospital is required. The same is true when it comes to personal property, as there are many sport utility vehicles and luxury cars that cost well over $ 30,000. Therefore, protecting your financial assets in the event of an accident is likely to require much more coverage.
Shopping comparison is always something smart to do, and there are many websites designed to help consumers compare the prices of insurance policies. Insurance agents can also help. Independent agents often offer multi-operator policies and can help you find the policy that best suits your needs. Before avoiding an agent in favor of an online provider, think carefully about who you are going to call after having an accident. Your agent has an incentive, in the form of your recurring business, to provide a good service, while an online service may fail.
Before buying a policy, investigate your policy provider, regardless of who it is. Numerous companies rate the financial health of insurance companies, and their state also has an insurance website that rates companies based on the number of complaints they have received. (For a complete list of state insurance regulators, visit the Federal Citizen Information Center).
Buying wisely can help you protect your health, your assets and your wallet, so you should strive to determine the type and amount of coverage you need. Also be sure to review and understand their policy before signing on the dotted line. If you plan well, you will be satisfied with the results, in case you find the need to put your policy to the test when making a claim.
For related reading, see Wheels Of A Future Fortune.
Video credits to Automobile Insurance Tips YouTube channel