Buying an auto insurance policy is never simple.
The internet does make it easy to compare policies and rates, but it’s still easy to get confused by all the jargon insurance companies use.
Here are some things you need to know about auto insurance.
Every insurance company has its own formula for calculating premiums. These companies account for factors, including the make and model of the car, how you use the vehicle as well as your driving record.
Other Factors Include
Age, gender, and marital status: Young drivers and male drivers are likely to have an accident while married drivers are less likely to file an accident claim.
Where you live: An urban dweller is most likely considered a bigger risk than a rural dweller who has fewer car thefts and break-ins.
Your credit score: Many insurance companies decide your premium based on your credit score.
Insurance companies often offer discounts for low-mileage, multiple cars, safe drivers as well as students with good grades. You could also get a better price for getting auto and homeowner’s coverage with the very same company.
Often, there’s a misconception that the more expensive your car, the more your insurance will cost. That isn’t always the case. Often, a high-end SUV will have a better claim rate and premiums will end up costing less.
If you ever let anyone else drive your car and they crash it, your insurance will still cover the repairs. Insurance usually follows the driver and not the car.
Many policies often exclude driving a personal vehicle for any business purposes and often, companies will cancel your policy if they find out you’re doing this.
While it’s tempting to cancel your car insurance when you aren’t planning on driving for an extended time, always remember that if you let your coverage lapse, your insurance rates will always be higher should you need coverage down the road.
Shopping for insurance is like making any other purchase. You need to comparison shop before you decide. Every company has a different underwriting policy which gives different prices – you can compare these prices side by side.