Choosing a car insurance plan can be a little confusing if you have never navigated automobile insurance before. There are several different types of car insurance plans and so many different options that are available when you put together an insurance plan. Read over this guide to help you determine which type of car insurance is best for you.
First, you will need to decide which type of coverage you will need. If you are looking for cheap car insurance you may choose to get the lowest coverage that your state allows. All states require some sort of liability insurance that covers your legal bills that result from an accident and damages that you cause to others, including injuries to people and property damage.
If you want to provide coverage for your vehicle in the event of an automobile accident you will need to purchase collision coverage. You can also purchase comprehensive coverage, which will cover the costs of repairing or replacing your vehicle if it is damaged due to something other than an automobile accident, such as vandalism or hitting a deer.
There are several other types of insurance coverage and extras that you can purchase, but these are the most common automobile insurance plans. Aside from the type of coverage that you will purchase you will also need to determine your deductible. This is the amount of money that you will pay toward damages or other bills before your insurance kicks in. Your automobile insurance premium, or the amount that you pay for your car insurance, will vary based on several things, including your deductible. The higher your deductible, the lower your premium will be. Typical premiums range from $200 to $1,000.
Automobile insurance companies use several factors to determine your insurance payments. There are some factors that you have no control over, such as your age and your gender. There are other factors that you do have control over that you can work on to lower your automobile insurance payments.
Your driving history weighs heavily in an insurance company’s decision on how risky you are to insure. One or more moving violations or accidents within the past several years can raise your insurance prices because you are viewed as riskier to insure than drivers who have perfect driving records. Another thing that insurance companies consider is your vehicle’s age. An older and cheaper car will cost less to insure because it is less expensive to replace than a brand new, pricey vehicle. You can buy a clunker if you really want to cut your insurance costs but be aware that repair costs may make this option break-even.
Some insurance companies also look at your credit history to determine how risky it is to insure you. This is because insurance companies have found that individuals with lower credit scores are more likely to file claims more frequently than individuals who have higher scores. If you want cheap car insurance you will need to either work hard to earn a good score or choose an insurance company that does not take your credit score into account.
Last but not least, don’t forget to inquire about discounts for things like earning good grades in school, having safety features like airbags and parking your car off the street when you are trying to find the best insurance rates.