When most people shop for car insurance, they focus on the coverage options and leave out the most important aspect of the policy – the price. Most companies charge drivers based on their risk level, which is based on the number of tickets they have racked up in the past. Drivers with clean driving records are usually able to get the best rates on a policy. However, those with traffic violations, accidents and tickets often pay more in premiums.
Here’s a look at the six most important factors that affect your car insurance policy premiums. These factors include your age, driving record, vehicle type, location and driving history. Six common car insurance policy factors are: driver age, driver gender, auto make and model, location and driving history. Depending on where you live, each of these coverage options is either mandatory or optional. In addition to being able to purchase more or less coverage depending on where you reside, vehicle owners can also choose from collision and comprehensive coverage.
If you buy a four-door sedan, you’re required to get collision and comprehensive coverage on it. This will require that you pay more for the premium because of the vehicles higher cost to repair. If you don’t own a luxury car, you may not want to go with a comprehensive policy. However, if you do own an expensive vehicle, you may want to purchase this type of auto insurance coverage to protect your investment.
Another aspect of your car insurance policy that you need to consider is the property damage liability may help pay for damages to your rented vehicle during an accident. In order to determine the amount of this coverage that you will need, you should ask the agent for the amount of property damage liability may help pay for. The more the coverage for property damage, the less you will have to pay for paying for medical expenses and damages to the vehicle. Liability coverage will be higher if you have a poor driving record.
Collision coverage is designed to pay for repairs to your vehicle if you are in a wreck that was your fault. Usually this type of insurance is required if you own a vehicle that is worth more than $600. This amount of money usually includes the market value of the vehicle. If you can’t buy more money for your vehicle then collision coverage will help you get the lowest premiums possible. Collision coverage may also be required if you have uninsured motorist coverage on your vehicle.
Bodily injury insurance is designed to cover the costs associated with paying for injuries to yourself or others caused by an automobile accident. If you’re the insured party in a vehicular accident, the costs of paying for the other person’s medical bills can be very high. You may find that this type of insurance is very important. However, it will differ from state to state. Generally speaking, bodily injury liability insurance will cover the medical expenses of those who are injured in car accidents and who are the victims in the event that you are found at fault.
In the event that you have uninsured motorist coverage on your car, this kind of insurance can save you from having to pay for damages to another individual’s vehicle if you are found at fault in an accident. Uninsured motorist coverage may help to prevent you from being sued for damages to another individual’s vehicle if you are at fault in an accident. However, the limits of this particular coverage will vary from state to state. It is important to check with your agent in order to see what this policy may offer you in terms of coverage for the uninsured motorist.
Comprehensive coverage is designed to repair your vehicle after an accident. This type of coverage will pay to fix your vehicle if you are involved in an accident with another vehicle. It may also pay to replace the car if it is damaged through theft, vandalism or an act of nature. Collision coverage may help pay to repair the car if it has been damaged due to a collision with an insured vehicle. Again, this coverage will vary from state to state so it is important to shop around in order to find out exactly what your auto insurance policy may offer you in terms of coverage for these types of incidents.