subject: Understanding The Factors For Pricing Your Car Insurance Policy [print this page] If you drive, and you own or lease the car you drive, you're going to need car insurance. That's a fact of life. Therefore, if you've just gotten your first car, the next thing to do before you take it out on the road is to buy auto insurance.
Scads of insurance for sale, but which policy is best?
The first thing you need to do is to figure out the kind of auto insurance you're going to need. If you've got a new car or you are leasing your car, you're probably going to need coalition and/or comprehensive car insurance. Collision insurance will pay for damage to your vehicle if you're in an accident with another car or an object. Comprehensive insurance pays for damage to your vehicle that didn't happen because of an accident. For example, if your car is in a severe rainstorm with hail and it's damaged as a result, the auto insurance you buy will pay for the repair, less any deductibles you opt for.
If you've got an older car that isn't worth much, then you should probably get simple liability insurance. Liability insurance doesn't cover anything in relation to the car, such as repair or replacement, but it does cover you for bodily injury or property damage for OTHER people if you're in an accident and are found to be at fault.
Saving money on car insurance
Auto insurance rates can fluctuate significantly from company to company, but there are several factors that don't have anything to do with driving, necessarily. Where you live is going to determine how much you pay for your car insurance, because if you live in the city, you'll pay more than you do if you live in a rural area. Why? Because accidents and vandalism are much more common in urban areas than they are in rural areas. Your age, too, impact how much you pay for car insurance; if you're a younger driver, you'll pay more than an older driver, and if you are a male, you'll pay more than a female, even someone your own age. That's because male drivers have more accidents than female drivers do. As you get older, gender differences ease, so that by the time you're over 25, you should be paying less you are a male -- as long as you keep yourself accident free.
Those are the things you can't control, but there are absolutely things you can control so that you can save money on your car insurance. Let's take a look at some of them.
Pick a car the insurance companies deem "safe"
Auto insurance companies give breaks to people who drive "safe" cars. auto insurance companies know which cars are most risky, either because they are targets for theft or because of safety issues. Do some research and find out which cars auto insurance companies deem "safe," and "low risk," and then choose among those.
Maintain a good driving record
No matter your age, if you're a good driver you'll pay less for insurance than you will if you think driving is a good opportunity to play "chicken" with the guy in the next lane. In other words, follow the speed limit, pay attention to traffic laws, and follow the rules of the road. Avoid traffic tickets and accidents, and you're going to pay a lot less for your insurance than you will if you don't.
"Skimp" on driving
It's not always possible to avoid driving altogether, but opt for other transportation options whenever you can. Use public transportation, carpool, bike or walk to destinations whenever you can, and you'll pay less for auto insurance.
Discounts matter
Most insurance companies offer some kind of discount to customers, whether they be "good driver" discounts, "good student" discounts, or discounts for having multiple policies with the same company. If you don't see any discount information advertised, make sure to ask.
Do your research
Before you buy, make sure you do your research. The Internet has streamlined the insurance buying process, because you can compare quotes among several companies instantaneously. Comparison shopping policies before you buy can save you a lot of money over the long haul. Make sure you choose the best policy for your needs, at the lowest price you can pay.
by: Anna Abola
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