Car insurance is designed to protect you from potential losses while you are driving. However, searching for car insurance can be complicated at times. To assist you through the process, here are some tips for finding the best car insurance plan.
Obtaining car insurance is mandated in many states in order to drive legally. While searching for the best
General Car Insurance Types
General car insurance is classified into:
- Third-party liability insurance
- Comprehensive insurance
Liability insurance provides a minimum level of coverage if your vehicle injures someone or damages property. It covers third-party medical treatment and repairs but does not cover your medical care if you sustained an injury or the insured vehicle. Comprehensive car insurance includes own-damage cover. The own-damage cover provides protection if your vehicle is stolen, damaged, or destroyed due to natural or man-made disasters. Injuries or the death of the driver are also included. Comprehensive policies are flexible as you can add multiple types of coverage to them.
Factors Determining Car Insurance Premium Calculations
There are several factors car insurance companies look at to help determine your monthly premium. Insurers will assess possible vehicle risks. This generally includes the make and model of your vehicle. Owning SUVs and commercial vehicles may lead to paying higher premiums. Your age may also influence your premium, as young and inexperienced drivers often pay higher premiums. If you reside in a highly-populated area or near the highway, your chances of being involved in an accident increase, which impacts your premium. If you file multiple claims in a relatively short time period, that could also raise your premiums.
If your monthly premiums are high, there are multiple things you can do to help lower your premiums. Practicing safe driving habits should be your top priority. If you do not claim for five years, you are rewarded with a No Claim Bonus which reduces your premium by almost 50%. You can also contact your insurer about increasing your deductible, as that will lower your premium. You can also install new safety features in your vehicle to decrease the chances of thefts which helps lower your premium.
Purchasing Options for Auto Coverage
You can purchase insurance directly from the insurance company’s website. Many third-party websites allow you to compare quotes from multiple carriers and figure out which policy is the right fit. You may also be guided by their customer service representative. Many car dealerships have working relationships with insurance companies. This allows you to purchase insurance at the same time you are purchasing your vehicle. It’s recommended that you purchase coverage online, as you are likely to qualify for more discounts and offers.