Car InsuranceHaving car insurance protects you and your car in the event of an accident. Not only can having insurance save you money after a collision, maintaining insurance is required by law in most states. Unless you live in New Hampshire, you are required to maintain at least your state’s minimum coverage. Minimum coverage laws vary by state.
If you are searching for cheap car insurance, it’s important to learn about the different types of insurance and what factors will impact your premiums. Doing so can help you make an informed decision on your coverage and your investment into insurance.
What is car insurance?
Car insurance can protect you, your passengers, and your car in the event of an accident. It works like this: You pay an insurance company for specific types of coverage that help pay for expenses in the event of an auto accident.
While having insurance requires you to pay monthly premiums, insurance is mandated by law in most states. However, you can purchase more insurance than your state law requires.
The Types of Car Insurance Coverage
Before reviewing car insurance quotes, it is important to take the time to learn about the various types of car insurance coverage. Knowing your coverage options can help you make an informed decision about your coverage.
- Liability Insurance: Liability insurance provides coverage for property damage and injuries to the other party when you are found at-fault for an accident. Liability insurance does not offer coverage to your vehicle, personal property, or the injuries that you and your passengers sustain.
- Collision Insurance: Having collision car insurance protects your car after an accident, regardless of who is considered at fault. Coverage helps pay for the repair or replacement of your vehicle.
- Comprehensive Insurance: Having comprehensive insurance will further protect your vehicle. Not only does it afford you further protection in the event of an accident, but it also provides coverage for theft and weather-related damages.
- Medical Payments: This type of car insurance coverage helps pay for any medical expenses that you may have from an accident, regardless of who is at fault for the crash.
- Personal Injury: Personal injury coverage helps protect you against loss of income and some medical expenses if you are not able to return to work immediately after an accident due to your injuries.
Comparing Car Insurance Quotes: Determining Your Premium
Car insurance companies consider several factors when determining the premium you will pay for insurance. Some of these factors are not within your control. However, it is important to be aware of them to get a better understanding of how premiums are determined.
Your car insurance quotes will be determined by factors such as:
The Type of Car You Drive. Some cars cost more to insure based upon their value. Other vehicles can be more costly due to a lack of built-in security features. You may also experience lower premiums if you have a car that has additions such as anti-theft features.
- Your Driving Habits. The amount of time you drive and your driving record significantly impact your insurance rates. The more you drive, the more likely you are to get into an accident. However, your driving record will play the most significant role here. If you have previous accidents on your record, your premium will be higher.
- Where You Live, Your Age, and Your Gender. Statistics such as age, gender, and location will all impact your premium.
- The Type of Car Insurance You Choose and Your Deductible. More insurance will mean a higher deductible, but isn’t that worth the peace of mind? Your deductible amount will also impact your rates. A lower deductible will cost more each month to maintain.
The first step in finding the best car insurance for you is to determine the amount of coverage you want or need. Doing so can make it easier to review quotes from multiple insurers. Otherwise, car insurance companies that provide you quotes may not be quoting the same level of coverage. This can significantly impact the results of your query. Therefore, you should know the type and amount of coverage you want before searching for a provider.
Shop around and compare car insurance quotes to find the best price for the type of coverage you need. When searching for insurance, it is also worth noting any extra benefits that an insurer provides. For example, some insurers give more discounts to their enrollee’s overtime rather than only providing the best deals to new customers.