How much does car insurance cost per month? How much does car insurance cost for certain cars ? What kind of things will help to lower car insurance rates? These are all important questions and like with all purchases, when buying insurance you want to get the most bang for your buck. So you ask around and talk to friends and neighbors, because that’s what we do when we’re researching prices and service. But when you get quotes from those highly recommended companies, the prices are astronomical. You’ll wonder, “What happened to the great deal my friend got?” The costs for auto insurance can differ dramatically from one person to another so just because your friend may find the policy that is best for them is from Company X does not mean that the same is true for you.
Factors that Impact Your Auto Insurance Rates
Apart from the obvious criteria that help to raise or lower car insurance rates, like a clean driving record and no accidents or claims, there are numerous other things that can affect pricing. Age, gender, the type of car you drive the number of miles you drive per year, if you live in an urban or more rural area and if there are new drivers on the policy are all things for the insurance underwriters to consider. One surprising and relatively new piece of information that goes into computing your rate is your credit score. A correlation exists between lower credit scores and the likelihood of making claims.
Individual Needs Determine Best Policy for You
But still, what if your information is pretty similar to your friend with the great rate and there is still a huge difference? Why? Could be your friend has a bare bones policy, with very high deductibles, or the minimum coverage required by law. Maybe he just wants to be covered for the big stuff. He may also be a member of a preferred group or association, which entitles him to lower rates.
When considering the type of coverage to have on your vehicles, you also need to consider your lifestyle. If you travel and rent cars from time to time, it can be a money saver to have the option in your insurance policy to cover vehicles you rent. A small increase in your yearly premium will save you extra daily charges for rental insurance .
Types of Cars And The Cost of Auto Insurance
You should know that the type of vehicle you drive plays a role in how much your auto insurance costs. A good rule of thumb in determining how expensive auto insurance will be for a certain vehicle is that the more expensive the vehicle the more expensive the auto insurance , the sportier a car the more expensive the auto insurance , and the more attractive to thieves the vehicle is then the more expensive the auto insurance .
Knowing How Much Auto Insurance You Need
Don’t forgo comprehensive coverage on your car to avoid paying high premiums, especially in vehicles that are relatively new. If your vehicle is stolen or catches fire, you will most certainly need another one and fast. Having comprehensive insurance protects you in those cases. Consider realistically the best deductible for comprehensive. If you’re going to replace your car and it’s worth $4000 and your deductible is $2,500, you will not have much left over to put towards the new vehicle. However, if your vehicle has a higher value, a higher deductible may be a better fit.
Policy Perks on Your Auto Insurance
Some auto insurance policies provide perks that are worth paying a little extra for. Roadside assistance for a slightly higher premium is a good choice if it allows you to forego your membership to an auto club with the same service. Emergency medical and travel help is also included in some policies. Make sure you know what is included and what’s being charged extra for. That way you can best make cuts that won’t compromise your coverage or find a better insurance provider who gives you just what you need.
Don’t forget, before comparing numbers on similar policies, make sure you’re really comparing apples with apples. Make sure your policy is tailored to the realistic needs of you and your family.