Once you understand the various portions of coverage available through an auto insurance policy, it is time to consider the price. There are deductibles and premiums that you can incur when getting auto insurance, and also, sometimes, out-of-pocket costs you will still have to pay in the event of an accident, even after you have insurance.
When considering how much you will be charged for car insurance, there are a few factors the auto insurance companies think about. The first factor they look at is what kind of vehicle you drive –sports cars run higher with insurance than family sedans, and other vehicles have higher theft rates. Another factor is where you live – if it is an area that is more urban or has higher vandalism rates, your insurance will be higher. Those who have longer commutes or who drive often have higher insurance, and also your demographic statistics – such as your age, sex, marital status, and driving record – are all taken into consideration.
There are some ways to get yourself lower rates. If you are purchasing a new car, try getting one that “looks good” to the insurance companies – that is, it has a lower theft rate and is not prone to problems. Also, see what incentives your insurance company offers – many will have good student discounts for high school and college kids or discounts if you insure more than one car or have an accident-free driving record. Consider ways to reduce your driving if commuting to your job is a factor in higher insurance rates – possibly taking public transportation or setting up a carpool. The only way to ensure better insurance rates is to drive carefully!
Besides checking your payments for a new auto insurance policy, check out the deductible. Deductibles can vary by state and also by the size of the accident. For example, if you are in an accident with $2,000 worth of damage, you may be expected to pay $500, and the insurance company will take care of the rest. Choosing your deductible is an important task, as you have to consider how much you would be willing to pay in the event of an accident.
As long as you have a clear idea of what you are willing to pay and what the insurance company is looking for in you and your driving record, you will be well on your way to getting excellent auto insurance at a reasonable price.
Don Westerfeld has been active in the field of Insurance and Financial Planning since 1997. Don grew up in Indiana later moving to Lakeland Florida where he continues to reside with his wife and children. When he’s not in the office you can find him enjoying the great outdoors. He has served on several charitable business and non-profit organizations and continues to provide guidance, advice and support to local charities.
Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page.