Key Auto Insurance Tips that Every Car Buyer Should Know

Do you have your car insured? If you do, are you paying the right amount of insurance premium? Insurance companies consider a number of factors when they decide how much their customers will pay every month.

These factors include age, profession, yearly income, accident record, marital status, and many more factors.

When auto owners search low premium car insurance, here’s something they should know:

What does the cost of auto insurance include?

Coverage can pay for injury and death in hit and run cases, and even lawyer’s fee. Property damage claims can also be covered. However, car insurance may or may not cover medical bills. Check with your state and specific auto insurance policy for specifics.

In different ways, auto insurance policies can save your car. Collision coverage is a prime aspect of any auto insurance plan. In case your car is damaged by an accident, collision coverage bears the cost up to its book value.

 

Auto Insurance

Vehicle type

The price of the vehicle affects the premium amount. The repair cost of the car in the case it is damaged, and additional charges, are considered when the premium is calculated. Because it’s costly to repair expensive vehicles, the premiums are usually high.

This is more or less the same everywhere. Whether you are buying auto insurance Rochester, NY or any other location, you can gauge the probability of the vehicle or its parts being stolen by checking the records from Highway Loss Data Institute or the Insurance Institute for Highway Safety.

SUVs or sport-utility vehicles come with the highest insurance premium. SUVs are fancy cars. But that’s not the only reason their insurance premiums are so darn high. There are other reasons. SUVs are quite likely to get stolen. Small vehicles with 2 doors come with high accident costs, so their insurance premiums are also high.

Personal history

There are certain factors related to the auto owner’s personal life that play a key role in deciding whether you’ll get a favourable insurance quote. Such factors are the owner’s credit score, marital status, age, driving history and gender.

Young men often drive recklessly while older people from both genders drive slowly and cautiously. Hence, young men may have to pay a higher premium. Interestingly, married men who have had less road accidents pay less premium than unmarried women, respectively.

If you are a single male, a clean driving record is the best way you could lower premium on auto insurance. But that’s not all.  Ever wondered why people living in urban areas pay more premium than people living in rural areas? That’s because a less number of accidents take place in rural areas than urban areas.

Now that you know the factors that affect auto insurance premium rates, here are some quick tips to help you save on your auto insurance premium:

Uninsured& underinsured motorist coverage

Why is it important to get uninsured& underinsured motorist coverage? Because you could match it with your bodily injury liability limit. If your car gets hit by another car leaving you injured and the medical bills exceed your policy limit, uninsured/underinsured motorist coverage can fill up the gap by paying those bills.

Everyone chooses a policy in accordance with his or her financial ability. In case you feel the limit of the policy chosen by you is not sufficient, go for increasing your uninsured/underinsured motorist coverage to match your bodily injury liability limits.

Compare the policies

We compare retail prices before making a purchase, right?  We should do the same when buying auto insurance. While comparing, we need to check deductibles and coverage limit. Policies that come with high deductibles require policyholders to pay less premium. As for coverage limits, the amount of coverage and types of coverage are both important.

Voluntary excess amount

Negotiation can be key to get the best deal. Promising to increase voluntary excess is a form of negotiation, which can get you a less expensive auto insurance policy.

What exactly is voluntary excess?

It’s a commitment that if you cause an accident, you’ll pay more towards the recovery and treatment of the victim. Such a commitment can bring the cost of premium down. There’s a caveat, though. Successful negotiation is involves bending, but not bending too much. When you promise to pay too much, you might not have a good deal.

Check car security discounts

Securing your car can get you a discount. Installing an alarm, approved by the insurance provider, or even a tracking device, is a great way you can make your car secured. Two other important discounts are:

  • Reduced mileage
  • Not adding young drivers

Reducing miles can save you a good deal of money. Some drivers lie about annual mileage. Please don’t ever do that. If you are caught, your claim will be at risk.

As for adding young drivers, we’ve already mentioned that a driver’s age affects your premium cost. The younger they are, the more premium you must pay as young drivers are more prone to cause an accident.

Summing up

Auto insurance is among the major insurance policies in the insurance marketplace. When shopping for a policy, follow the tips given here to help find the most comprehensive coverage at the least expensive rate.

3 comments

  1. This is some really good information about auto insurance. My fiance and I are looking at getting a second car once we get married. I didn’t realize that you can get a security discount for having low mileage on the car. I guess we should keep that in mind while we are looking for a car.

  2. That’s good to know that the price of the car affects the premium amount. I guess that’s because a more expensive car would need more expensive care. When I buy a car I’ll have to consider the impact of insurance on my budget.

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