The Cost of Auto Insurance
Auto insurance is a contract between you and an insurer, in which you agree to pay a premium and the insurer promises to cover your losses if you are involved in an accident. It may also protect you against financial loss due to theft or vandalism of your vehicle.
There are different types of auto insurance available to suit your individual needs and budget. Some of these include liability, collision, comprehensive and uninsured motorist coverage.
In most states, you must carry some form of auto insurance. The minimum liability limits of your policy will vary by state and must be sufficient to cover the damages incurred in an accident, as well as the costs of any legal fees.
The cost of auto insurance depends on several factors including your driving record, age and the type of car you drive. You can lower your auto insurance costs by maintaining coverage without gaps, bundling policies and taking advantage of discounts.
Your driving history – Drivers with good driving records tend to pay less for car insurance than those who have had traffic violations or accidents. Having a clean driving record can make it easier to get an affordable policy and can help you avoid penalties for speeding, texting while driving or driving under the influence.
Gender – Women typically have lower rates for automobile insurance than men. This is partly because they tend to be less likely to get into accidents than men.
Insurance companies will often offer discounts to drivers who have a good driving record, are young and inexperienced drivers, take a defensive driving course or attend a driving school. It is a good idea to ask about these discounts before you purchase a policy.
Geographic Location – Your geographical location can affect your auto insurance rates because of weather events that can damage cars or cause accidents. Your area’s hazard level and the severity of traffic congestion can also factor into your rates.
Collision & Comprehensive
Collision coverage will pay to repair your vehicle after it is damaged in an accident or other covered event, such as fire, severe weather and theft. It is usually sold along with liability and property damage coverage.
Your age, experience and gender are also factors that impact the price of your car insurance. If you’re younger or inexperienced, it may be difficult to find an insurer who will offer you a policy at a reasonable rate.
The cost of auto insurance can also depend on the type of car you drive and your credit score. Your credit score is a statistical tool that helps an insurer predict your likelihood of filing a claim and the cost of that claim.
You can also reduce the cost of your car insurance by choosing a higher deductible. Deductibles can range from $250 to $2,000 and are often paired with a higher collision deductible.
The best way to determine the price of your insurance is to compare quotes from several companies and find the best value for your money. Some of the top providers include USAA, Amica, GEICO and Esurance.