How Much Does Car Insurance Cost
You’re browsing around for car insurance. Perhaps you are concerned thinking that what would it really be the cost of running? Well, you’re not alone. And this is the question lots of folks ask when they are ready to hit the road. It may feel like putting together a puzzle when it comes to car insurance which is made up of different pieces, all of which have to fit perfectly. But have no fear, I am here to make sense of it all. In this fun nutshell, we are going to take a look at what makes impact on the cost of car insurance and how can you get the best offer. Put on your seat belts, because we’re going for a ride in the world of car insurance!
Factors that Affect Car Insurance Prices
The price was not just a random number when I looked for car insurance. And there are lots of things to figure out what you will pay for it. Let’s break them down:
YOUR AGE AND GENDER
You may not realize it, but your age and gender can have an impact on your car insurance rate. For example, younger drivers often pay more because they are considered to be at highest risk. At age 18 I was paying through the roof compared to what my dad paid. The stats I could source tell us that young males are paying more than even young females. These trends give insurers an idea when it comes to setting their rates.
LOCATION MATTERS
It very much depends on where you want to live. I used to live in a small town, and then I moved to a big city — my insurance coverage got more expensive. In general, urban areas have higher premiums as a result of increased traffic, accidents and theft. You could qualify for some discounts, provided you live in a peaceful neighborhood.
TYPE OF VEHICLE
The type of vehicle you drive affects your insurance costs as well. Cars that are worth a great deal and those that are frequently stolen cost more to insure. When I was in my early 20s and bought a sporty coupe, I found that out the hard way. It’s either I paid a lot more insurance than when driving it as just another humble sedan. Some insurance might provide you with some discount if the car of your choice has good safety ratings.
DRIVING HISTORY
A clean driving record is also important. On the other hand, you may receive a discount if you have a clean record. When my insurance agent told me about my clean slate, I was proud. Conversely, if you have had accidents or tickets on your record for a few years now will also reflect higher premium amounts. It pays to drive safely.
CREDIT HISTORY
In determining rates, many insurers factor in your credit score. I once had a low CE in college and it killed my insurance. Lower rates for good credit Watching your credit is a good idea, as well working to increase it.
COVERAGE OPTIONS
Your coverage: The kind of policy you go with will affect how much your rate will be. Liability coverage is the bare minimum that you are required to carry, but increasing your policy with comprehensive and collision will also mean a higher premium. I had initially signed up for the minimum in liability and when a friend got into an accident, I opted to add more coverage as well. The downside is the higher costs of more coverage, but it might make you sleep better at night knowing that you covered on all fronts.
DEDUCTIBLES
The deductible is the amount you must cover from your own pocket before insurance coverage kicks in. A PREVIOUS Higher deductible=lower premium. I did have lower monthly payments when I adjusted my deductible. However, you must keep in mind that if a claim is submitted, it will count against that deductible.
AVERAGE COST OF CAR INSURANCE PER MONTH IN USA
Now that we know the factors, here are the numbers. It is an average monthly rate by state and provided as a reference to give you an idea that reflects how much car insurance costs in U.S.
Individual / family plans have the same cost, but you should always get a few quotes because these numbers could change.
Below are 15 with 1 easy tip on how you can reduce your auto insurance premium.
We all want to save money. Just a few practical tips — from me to you:
SHOP AROUND
When you receive a quote, don’t take the first offer. I saved up some money having to compare between a few of different companies. I found a much better deal. Being able to compare estimates side by side on websites will certainly assist in this process.
BUNDLE INSURANCE POLICIES
Bundle it — If you have home insurance (or other) as well, bundle with your car. Most of the companies do it for bundling discount By combining my policies, I saved a decent sum of money.
TAKE ADVANTAGE OF DISCOUNTS
Learn more about discounts from your insurer. You may be able to get a discount for having a good driving record, being in school, or taking a defensive driving course. I enrolled in a class for the sole purpose of obtaining the discount and it paid off.
DRIVE LESS
The more or less you actually drive, the lower your risk. Keep your insurer informed if you work at home or use public transport instead. My rates went down when I started driving less.
INSTALL SAFETY DEVICES
Incorporate safety features in your vehicle to avail discounts. I put in an anti-theft system, and my insurance coverage gave me a break.
PAY ANNUALLY
Try your hardest to pay annual rather compared with paying month to month. Most insurers will offer a paid in full discount. I learned this when I got a call from my insurance company asking me for payment alternatives.
WHY SHOPPING FOR INSURANCE MATTERS
I cannot emphasize this enough: Go shopping for insurance. Frankly I didnt do the right research when I bought my car and paid extra. That, I learned my lesson. Pricing: Prices can range widely amongst suppliers, so be sure to store round.
WHAT TO KNOW ABOUT QUOTING
When you are prepared to start taking quotes, there is some basic info that you will have to supply. Prepare to answer questions with regards to your driving record, what sort of car you have been struck by the coverage choices. I found it useful to have all my information ready to go when I set out looking for quotes.
Car Insurance MYTHS
There are several car insurance myths getting passed around. Im guilty for falling father some of them, clear the air facts are:
MYTH: ALL RATES ARE EQUAL AMONG INSURERS
This is far from true. The price ranges from one company to the next can differ greatly. I found this out the hard way after I changed insurance providers and my premium went from nose-bleeds high to a dear john letter.
MYTH: RED CARS ARE MORE EXPENSIVE TO INSURE
It is common myth due to the assumption that red colors attract more of an audience. Your car color, in reality has no impact on your rates. It also took me some time to stop worrying about this topic as much, but then I made my research.
FALSE: YOUR EMPLOYER IS HELPFUL ABOUT INSURANCE
Not discounts but less than this. Nevetheless, I figured my community insurance company had to be more competitive than any other policy. It’s always best to compare.
You keep hearing it, ‘YOUR INSURANCE FOLLOWS YOU’
The driver is usually not driving, the car is. Their insurance typically covers you if you use someone else other than the owner of the car. I experienced this myself when my friend lent me his car for the weekend trip.
CLAIMS PROCESS
Filing a claim is imperative. This is similar to locating a muscle group that you had not used for years and the next day it feels like you have been run over by a car once… but those occurrences are minor.Mined happen one day with I small accident and I was completely overwhelmed. A step by step guide that can aid you through the process is introduced below:
STEP 1: ENSURE SAFETY
Top priorities include ensuring everyone is safe. If necessary, seek medical attention. Safety comes first.
STEP 2: GATHER INFORMATION
Gather Information From the Other Driver That information will include names, phone numbers, insurance data and license plate numbers. I took some photos at the scene which helped.
STEP 3: FILE A CLAIM
Contact Your Insurance Company Immediately Give them everything you find out. I found that timeliness of reporting is crucial for a claims to be handled effectively.
Step 4: Partner with your insurer
They will guide your insurer through steps moving forward. They may even dispatch an adjuster to evaluate the damage. Keep in Contact & Give them More Information
STEP 5: GET BACK ON THE ROAD
After this, when your claim is approved you will receive cash for the repairs or replacement vehicle. After my car was fixed, I breathed a sigh of relief and continued on.
THE FUTURE OF CAR INSURANCE
All these may change in future, as technology creeps into car insurance. One of the changes I see is services embracing usage-based insurance. These make you pay as you drive. Solid (if you don’t drive much) A few apps monitor how well you drive and give discounts for safe driving.
FINAL THOUGHTS
The price of car insurances does appear a cost burden, but knowing the reasons can arouse interest. Comparison shop and get quotes, remember to factor in discounts Every single step you make will save the money and get good result. Below, I have shared my experiences to guide you and hope it comes in handy. Drive safely and enjoy shopping for insurance!