If you have car insurance questions, we have car insurance answers. Trust us: we know it is scary to involve yourself in anything that you’re not totally knowledgeable with. That’s why we make it easy to learn the information that you want and need to know about car insurance. With this information, all of those wandering thoughts are gone forever.
There are Many Factors that Determine your Car Insurance Rates
Martha Sue down the road might have gotten a policy with Company A at rock bottom prices, but this is no indication that you will get these same inferior prices. So many different factors are used to determine the cost of your car insurance. Some of these factors are out of your hands while others you can impact. Factors that affect your car insurance rates include:
- Age: Most of the time drivers under the age of 27 pay more to insure their cars. Insurance companies consider this age range ‘high-risk,’ and pass that categorization on your way.
- Education: College-educated individuals get a break in their car insurance rates.
- Insurance company: No two companies offer the same rates, so if you want to stay within budget make sure that you compare rates with no less than 4 companies.
- Type of Car being insured: The type of vehicle being insured plays a considerable role in costs.
- Driving Record: Another important factor in the cost of your insurance policy.
- Insurance History: Lapses in coverage also place you into a high risk category so coverage costs more.
Have you Considered Rental Car Coverage?
Rental car coverage is offered as an option to drivers in most states. While an added expense to your policy, the coverage may very well come in handy if you are involved in an accident. With this coverage, you will be granted a rental car for the time that your car is out of commission and being repaired.
Car Insurance Fraud affects you
Car insurance companies across the U.S. are constantly battling car insurance fraud. As much as $6,8 billion is spent on fraudulent insurance cases in the United States, and when it happens companies are forced to increase their rates to recoup their losses. It is your duty to report suspected insurance fraud and ensure that you are not a part of the crime.
Moving Violations affect your Car Insurance Rates
Moving violations, or those that occur while your vehicle is in motion, includes speeding, DUI and others. You might not think that a moving violation has any impact on your life, but this is a myth, and every moving violation accruing on your record adds cost to your insurance policy. Violations within the previous 3 years will have an impact on your insurance cost.
Texting and Driving
Texting is much more complicated than it once was, thanks to smartphones and their unlimited capabilities. It is illegal to text and drive in most states, not that you should have to realize the safety issue if you happen to be in a city/ state that it is not. In fact, texting and driving is so dangerous that more than 3,300 people died from injuries sustained in an accident due to this task, and more than 420,000 injuries were reported in 2013. Don’t do it. Your life, and others on the road, is simply not worth it.
Driving without Auto Insurance is Costly
49 of the 50 U.S. states have laws in place regarding car insurance, making it mandatory for all drivers to carry coverage on their vehicles at all times. Some states even enquire that you present proof of coverage before you can register the car. If you ignore the laws you are committing a crime, and severe penalties can result. Penalties for driving without car insurance vary from state to state, but you can expect, at a minimum, a fine and driver’s license suspension. It is also possible for you to be placed into jail for the crime. There are costly fees to pay for all of these scenarios, not to mention the added costs when you finally do want to obtain car insurance coverage.
You’ll pay more if you Drive One of these Cars
Many people mistakenly believe that their car insurance rates are affected when they insure a new vehicle only, but this isn’t the case. If you are driving one of the makes and models of cars that is commonly stolen, your premium will reflect the added risk being taken to insure your automobile. Some of the most commonly stolen vehicles in the U.S. include the Honda Accord, Honda Civic and the Chevrolet pick-up truck.