Car insurance is a must-have for every car owner. It provides financial protection in case of an accident or theft. However, choosing the right auto insurance policy can be overwhelming, and understanding the terms and conditions can be confusing. This blog will discuss eight essential things you should know about auto insurance, to help you make an informed decision when purchasing a policy.
How Prices Are Determined
Several factors determine the cost of auto insurance, including your driving record, age, gender, and location. Auto insurance rates are typically higher than the national average due to the high number of accidents in the area. Other factors that can affect the cost of auto insurance include the type of car you drive, your credit score, and the coverage you choose.
The Difference Between Collision and Comprehensive Coverage
Collision coverage covers damages caused by a collision with another vehicle or object. In contrast, comprehensive coverage provides coverage for damages caused by events other than collisions, such as theft, vandalism, or natural disasters. Both types of coverage are usually required by lenders if you’re financing or leasing a car.
A More Expensive Vehicle Doesn’t Always Cost More to Insure
While it’s true that more expensive cars typically have higher insurance premiums, this isn’t always the case. Insurance companies also consider other factors, such as the car’s safety features, repair costs, and theft rates. A cheaper car with a high theft rate or expensive repair costs more to insure than a more expensive car with better safety features.
Ways to Pay Less for Auto Insurance
There are several ways to lower your auto insurance premiums. These include:
- Increasing your deductibles
- Bundling your auto insurance with other policies, such as homeowners or renters insurance
- Taking defensive driving courses
- Maintaining a good driving record
- Installing anti-theft devices in your car
Personal Auto Insurance Doesn’t Cover Using Your Vehicle for Business
If you use your vehicle for business purposes, such as delivering goods or driving for a ride-sharing service, your auto insurance policy may not provide coverage. You may need to purchase commercial auto insurance to ensure you have adequate protection.
Let Someone Drive Your Car, and Your Insurance Will Pay if They Have an Accident
If someone else drives your car and gets into an accident, your auto insurance policy will typically cover the damages. However, if the driver has insurance, their policy will likely be the primary coverage.
Let Your Car Insurance Lapse, and It Could Drive Up the Price When You Need It Again
If you let your car insurance policy lapse, it could lead to higher premiums when you need coverage again. Insurance companies consider lapses in coverage as a sign of risk and may charge higher rates.
How to Get the Best Price on Auto Insurance?
To get the best price on auto insurance, you should shop around and compare quotes from different insurance companies. You should also consider coverage limits, deductibles, and exclusions. Working with an independent insurance agent can also help you find the best policy for your needs and budget.
Contact Udell Family Insurance!
At Udell Family Insurance, we’re dedicated to helping you find the right auto insurance coverage. Our experienced agents can help you understand your coverage options and find the best policy for your needs and budget. Contact us today for a free quote.