The biggest and most important factor that decides your auto insurance rate is you, the insurance holder. Things such as your age, education, vehicle, and driving record affect your rates the most. You cannot control your age though and changing your educational level to help your insurance rates is not all that practical. A lot of people have excellent driving records, so what can they do to lower their rates? Let’s take a look at a few tips that some people don’t even know about that can lower your rates by hundreds each year.
Your Zip Code Affects Insurance Rates
Another factor that affects your insurance rate is your location. One would probably never think that your location could make such a significant difference in your insurance rate, but it does. The distance from one side of the street to another is enough to even double your insurance rate. It sounds crazy but it’s true. Again though, the price zones for your residence is not based on value or cost of living. This is another issue you can ask your insurance company about.
If you’re planning on moving, you should definitely contact your provider and ask if your rate is going to increase or decrease. Finding an affordable home is hard enough, but you should make extra careful that you’re keeping an affordable car insurance rate as well. You can compare rates by zip code in minutes at leading comparison site DirectAutoInsurance.org. You can also shop for direct rates that can save you hundreds in minutes.
Insurance is an essential part of life. It’s also a costly part of life but these are just some of the ways that we can try to lower the cost. The best way to make sure you’re doing all that you can is to compare as many rates as you can. This will help you find the cheapest rates for the coverage you need.
When the basic auto insurance packages are being discussed, you know that you must find the right policy for you and not just the one that is the cheapest. The reason why the law mandates drivers to have car insurance is that it serves as protection for the driver and the passenger against the financial consequences of being involved in an accident.
Take a Defensive Driving Class
Most think these classes are punishment for people involved in accidents but it isn’t true. Defensive driving classes are beneficial to everyone. It’s like a refresher course in everything there is to know when it comes to safe driving. Taking one of these classes can save you up to 10% on your car insurance rates. That alone makes it worth it. These classes can make you a safer driver as well as lower your premiums. You can use the money you are saving on gas and other daily expenses.
Choose a Car that’s Cheap to Insure
An easy way to keep your car insurance down is with the car you choose to own. A sensible, economically efficient car always keeps your insurance cheaper. It isn’t necessary to have a supercharged convertible sports car or an SUV that guzzles gas and sits two stories tall. Fancy cars come with a price on top of their ticket price and that’s higher insurance rates. But don’t expect your rates to be low because your car is inexpensive. Rates aren’t set according to the value of your car. Instead, it’s set according to safety and repair costs.
The insurance company is responsible for covering the damages to your car, so if your car is costly to repair, it will be costly to insure. Also, the insurance company covers the cost of another driver’s damage in the event of an accident. If your car doesn’t have a high safety rating, then your provider will charge more because you’re at a higher risk for an accident. If you’re worried about picking the right car for the best insurance rate, talk to your insurance company. They can give you suggestions for the best cars for the best rates.
Types of Auto Insurance Coverage
You must be familiar that the automotive insurance requirements for citizens vary depending on the state that they live in since states have varying minimum requirements. A lot of the basic auto insurance policies have at least 5 kinds of coverage no matter where you live. These 5 basic coverage kinds will be discussed here.
The first kind of automotive insurance coverage is collision and comprehensive. In the collision package, the coverage pertains to losses incurred by your car if it gets into a collision. The comprehensive coverage takes care of the physical damage not related to collisions. For instance, it can be through weather causes.
The second kind is liability insurance. There are 3 numbers to remember – 20/40/10. The number 20 means that the maximum that the person can get if he or she was involved in an accident and was killed or hurt is $20,000. The second number, 40, is the total that he will get for all persons that are hurt in the accident. The last number, 10, means that if you crash your car into somebody’s property, the maximum they can get under the liability coverage is $10,000.
Thirdly, there is an automotive insurance coverage for uninsured or underinsured motorists. This is what you will look to if the driver you got into an accident with is negligent and he does not have enough insurance or no insurance at all. The policy will be the one to take care of the bodily injuries as well as some damages to property if the state allows it.
The fourth kind of automotive insurance coverage is for medical payments, also known as no-fault or Personal Injury Protection. This is coverage for the owner of the policy and any other person that is inside the vehicle of the policyholder.
More Cost on Your Insurance
Property damage coverage takes care of damage to property incurred by third persons to the accident or to the property of the person you hit if the accident was your fault. If you think that you can easily add more types of coverage on your automotive insurance policy, try to include towing and labor as well. This will translate to more costs for you but they might be worth it in some instances.
If you wish to spend less on your auto insurance policy, there are many ways that you can do so. First, remember to go comparison shopping by requesting for as many quotes as you can from the companies directly or from an agent. You may also go online and look for sites that will give you a listing of quotes for your situation.
It also helps if you have a good driving history and a high credit rating. When you do comparison shopping of insurance companies, make sure that you check on their reputation and their performance. The Internet lets you do this easily since you can do it even if you are at home. Just go to the websites of the insurance companies. Be careful though as not everything that is on the Internet is true. With these tips, you now have the tools to save hundreds on your auto insurance.