You know you need to insure your car, and fortunately, it’s easy. There are many different car insurance companies to choose from, and they all have multiple policies for you to choose from.However, that doesn’t mean you should buy car insurance from the first provider that comes your way and tuck your information in a drawer, never to think of it again!Understanding the ins and outs of your policy by
seeking out car insurance tips is important. Here are a few tips to get you started.
The Type of Car You Drive Can Affect Your Insurance Rates
Vehicles are not created equal. What kind of car you drive can have a big impact on your car insurance rates.The types of
cars that command the lowest prices might surprise you. Older cars aren’t necessarily cheaper to insure. More expensive cars aren’t cheaper to insure either. Instead, it is really about the features of the vehicle itself.Two-door vehicles often cost more than four-door cars, and vehicles with safety features will cost less to insure than those without safety features. If your car has anti-theft systems and a backup camera, your insurance company will be more confident that you won’t be burglarized or back into a pole and file a claim.
A Lot of Other Things Affect Your Insurance Rates Too
It’s not just the type of car you drive that can affect the cost of your insurance rates. There are many
factors that can affect your car insurance.For example:Personal information, like your age, gender, and marital status can affect your rates. That's why teen drivers cost more than older drivers.Those who live in urban areas will have higher rates than those who live in rural areas with less traffic.Drivers with better credit scores have fewer accidents, so those with high credit scores generally have lower premiums.Things like paying on time, renewing your insurance on time, and how many accidents you’ve had in the past can affect your rates. The company itself can affect your rates too. Some insurers are simply more affordable than others!
It Will Probably Cover Anyone Who Drives Your Car
The good news is that your insurance will probably cover anyone who is driving your vehicle. In general, policies follow the vehicle and not the person. However, that isn’t always the case.The only people you can count on being
insured when operating your vehicle are those who are listed on your policy. In some cases, the person behind the wheel may not be covered, especially if the person driving is an established member of your household, but they are not included on your plan. You might also have difficulty filing a claim if the person driving your vehicle doesn’t have car insurance themselves.It depends on your particular policy too. Some companies and some policies are more forgiving. It’s important to look carefully into the details of your plan before you allow anyone to drive your vehicle.
Comprehensive and Collision Coverage Are Different
There are many different kinds of policies you can choose from. Having a choice is a good thing, but those choices can be so confusing!Collision and comprehensive policies are often misunderstood. Collision coverage is the most common form of coverage, and it only reimburses you for damage to your vehicle in the event of an accident. Comprehensive coverage, on the other hand, protects against things like theft and damage, such as hail or vandalism. It’s important to understand the differences between these two policy types when getting a policy for your vehicle.
Insurance Discounts Make a Difference
Insurers are always talking about their discounts. You may get excited about saving money until you realize you will probably only save about one percent. It’s easy to feel like there’s no point in seeking discounts because saving one percent is no big deal, but combining discounts can help you save quite a bit.Car insurance discounts can be combined, which means you could end up saving five or ten percent on your insurance.
Different insurance discounts include:Membership and employer discountsAccident-free discountsDefensive driver course discountsGood student discountsMilitary discountsLow mileage discountsMulti-car discountsMulti-policy discountsAnnual and bi-annual payment discountsThe worst thing you can do is choose a car insurance policy quickly and tuck it away in a drawer and never think about it again. That is until you get into an accident. Understand your policy now so you can drive confidently on the road.
