The most comprehensive auto insurance policy will provide protection against a wide range of losses, including damage to the vehicle and its accessories, personal injury to you or your passengers, theft of the car itself, and medical expenses for those injured in an accident. The amount of coverage will vary, and you will also have the option to add extras such as collision or roadside assistance. A number of factors will affect your premium, including your age and gender, driving record, credit history and location (city drivers typically pay more). Your policy may also include a deductible and coverage amounts that you can select; for example, choosing a higher deductible can lower your rates, but you should be prepared to pay the amount of the deductible in the event of a claim.
In addition, you will want to consider whether your state requires any other types of coverage. For example, most states require you to carry liability insurance, and some also require that you have uninsured/underinsured motorist coverage. Some states have programs that help income-eligible drivers get liability coverage.
A fee paid to an agent or broker for their services. Some policies have an agency charge included in the premium, while others do not.
Your insurance company will provide you with a list of covered damages in the event of an accident or other loss. The list will usually specify the types of damage and the dollar amounts that are covered. You will then need to determine which of these are most important for you to protect against.
Some insurance companies offer online quoting that can give you a preliminary idea of how much your policy will cost. However, you will need to talk to an agent to get an accurate quote and to discuss your specific needs. Be sure to compare quotes on similar levels of coverage so that you are getting an apples-to-apples comparison.
Generally, the more you pay in premiums, the less risk you take and the lower your rates will be. Insurers will always consider your age, driving records and credit when setting prices. In some cases, you can improve your rate by letting your driving record and credit improve, while making other changes such as installing an anti-theft device or taking a defensive driver course.
If you have a loan or lease on your car, the lender will likely require you to carry full coverage. This will ensure that the loan or lease is protected in the event of an accident.
In the end, the most important factor in determining your car insurance premium is to choose a company that you can trust and that will meet your needs. For some people, that means selecting an insurer with a good reputation for customer service and satisfaction, for others it is all about the price. Whatever your priorities, be sure to shop around and ask for discounts. By following these simple tips, you can save money on your auto-insurance without sacrificing the coverage you need.