Facts About Car Insurance

Trying to make sense of car insurance can be a little bit confusing and tricky at the same time. Here are a couple of facts about car insurance that we hope will help you:

1. The car you have can affect the insurance rates – the Highway Loss Data Institute compiles insurance accident statistics for most types of vehicles. Many of the insurance firms use this data in order to set an insurance price. To give you a relevant example, if you have a very expensive car that costs a lot of money to repair, the insurance company will have to pay more if you are involved in an accident. Conversely, if the car you have is very safe and protects all of the passengers, the insurance company won’t have to pay a lot for the repairs;
2. Pay more, save more – car insurance can be very expensive, but if you already pay a lot, you should get a lot for your money. Optional coverage like roadside assistance, rental reimbursement, gap coverage, comprehensive coverage and motorist coverage can offer a lot of protection for a little price increase. Of these types, comprehensive coverage is in most cases the most the most expensive, but at the same time it still is approximately half the price of collision coverage and 1/3 the price of liability coverage. With other words, if you pay more, you might be able to save more money on the long run;
3. Insurance quotes vary greatly from company to company – for this reason it is best to figure out what type of coverage and options do you want/need and do some comparison shopping. Prices for the same policy from the same company are set by law as these are approved by the state and cannot be changed by an agent, which means that you will not be able to get a lower price for the same policy by simply going to a different agent or trying to lower down the price;
4. Discounts can save you a lot of money – the vast majority of the insurance companies offer from time to time discounts for car safety features, payment in full, electronic payments, safe driving record and many more. Make sure that you are rewarded  for being a safe driver and for owning a safe car so shop around until you are appreciated for this;
5. Lower your premium with higher deductibles – the insurance companies set their prices based upon how much money they think that you could pay. If you agree to pay for a bigger share of your own damages by raising your deductibles, the insurance company will know that they will not have to pay as much for your claims. For this reason, they will most likely give you a lower premium. If you decide to save money by raising your deductibles, think about the fact that you will have to pay more if you are involved in an accident.

These five facts about car insurance can do a world of good to you the next time you need to sign an insurance policy. Regardless of what type of coverage do you want and the car you drive, don’t decide in a hurry. It is best to do some comparison shopping until you find the best deal for you.

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