The wide array of information available makes purchasing auto insurance overwhelming. While finding a quote is easy, finalizing the policy with a rate that aligns with your needs may not happen due to various factors. To simplify finding auto insurance, here are some important things to learn while researching coverage.
Differences Between Collision Coverage & Comprehensive Insurance
One of the most significant areas of confusion for drivers looking for auto insurance in Calabasas, CA, is understanding what’s included in their policies. This is especially true in regards to collision and comprehensive insurance. Remember that collision and comprehensive coverage are optional parts of auto insurance policies.
Only liability insurance is legally required for you to operate your vehicle. Liability insurance covers any damages that you cause if your car accidentally makes an impact on a person or object. Collision coverage protects you if someone damages your vehicle in an accident. Comprehensive coverage protects you if your car is stolen or damaged due to inclement weather.
Remember that all auto insurers have a single method of calculating premiums, even if they rely on the same factors. Your gender, age, and relationship status affect your auto insurance rates. Research shows that young male drivers are more likely to be involved in an accident. However, married drivers are less likely to file a claim, which lowers their premiums. Your address is another significant factor. If you stay in a high-traffic area prone to crime, that will increase your premiums compared to staying in a rural area.
Confusion Regarding Expensive Vehicles
There’s a general misconception regarding expensive vehicles. Perhaps you’ve heard that purchasing a new car automatically increases your premium. That is not necessarily true. Many of the newer model vehicles have improved safety features that reduce the potential for an accident or theft. Occasionally, purchasing a new high-end car may lower your auto insurance premiums.
Key Differences Between Personal & Commercial Coverage
Many auto insurance policies in Calabasas, CA, exclude using a personal vehicle to complete business-related tasks. If your insurer finds out that you are using your personal car on the job without proper coverage, they may cancel your policy. Even if you avoid cancellation, you’ll still be left unprotected if your vehicle is damaged in an accident while you are at work. Covering all of the damages out of pocket could lead to a financial catastrophe. You should purchase commercial auto insurance if you’re driving your personal vehicle on the job. You also have the option to add an endorsement to your auto insurance policy that covers commercial driving.
Best Methods of Lowering Your Auto Insurance Premiums
If you’re searching for auto insurance while on a budget, there are a few ways to lower your auto insurance premiums. You may opt to reduce the coverage on your policy because you’re doing less driving going forward. Another popular option is increasing your policy deductible. Your policy deductible is the amount you must pay towards a covered loss before your coverage steps in.
While you may benefit from substantial savings for increasing your deductible, this is only recommended if you have the financial security to cover significant damages. You may also lower your premiums by qualifying for several discounts. Most auto insurance companies offer discounts for practicing safe driving habits and bundling your auto insurance with another policy.
Consult with Burton A. Harris Insurance Agency
It’s recommended that you shop around while searching for auto insurance. If you have any questions, contact our experts here at Burton A. Harris Insurance Agency, and we will assist you.