Are you eager to know some auto insurance facts? If so, turn your head this side.
Unless you’ve been living under a rock, you must have heard about auto insurance and how it’s a great idea to have one.
Well, that’s true, but you’ve probably not heard the important part of it.
I’ll let you in on the secrets of the auto insurance facts you should know.
Table of Contents
Facts You Probably Don’t Know About Auto Insurance
1. Your Credit Score Can Impact Your Premiums
Many insurance companies take your credit score into account when determining your auto insurance rates. Maintaining a good credit score can help you secure lower premiums.
2. Your Driving Record Affects Your Rates
Insurance companies closely evaluate your driving history when calculating your premiums. Safe driving practices and a clean record can lead to lower insurance costs.
3. You Can Customize Your Coverage
Auto insurance isn’t a one-size-fits-all solution. You have the flexibility to choose coverage options that best suit your needs, such as comprehensive, collision, liability, and more.
4. Your Car’s Make And Model Can Influence Rates
The type of vehicle you drive plays a role in determining your insurance rates. Factors such as the car’s safety features, repair costs, and likelihood of theft are considered by insurers.
5. Discounts Are Available
Insurance companies often offer various discounts that can help reduce your premiums. These can include safe driver discounts, multi-policy discounts, good student discounts, and more. Be sure to inquire about available discounts.
6. Your Location Matters
Where you live can impact your auto insurance rates. Areas with higher population densities or higher rates of accidents and theft may result in higher premiums.
7. Comparison Shopping Can Save You Money
It’s wise to obtain quotes from multiple insurance providers to compare rates and coverage options. This allows you to find the best policy that meets your needs and budget.
How Does Auto Insurance Work?
Well, auto insurance is not complex at all. It simply covers damages to your car and other liabilities in an event of an accident. To enjoy this, you need to first buy a policy then pay your premium regularly. This premium is then used to cover any damage your car may suffer.
Ethan Oliver, a top customer of VROOM car dealer, shared his experience of how his insurance policy came in handy. After he got his BMW 3-series, he knew the cost of any repair will be too much on him, so he bought an insurance policy. Not long after that, he was involved in a car crash. He said he was faithful with his premium payment and he knew he has the damage covered. The next thing he did was notify his insurance company to file for a claim and his insurer had the damage covered in no time.
Types Of Auto Insurance
Auto insurance provides coverage in several situations. If you must know, this insurance does not work like magic neither is it rocket science. It is clause binding.
It means that the damage to be covered must be as stated in your policy. Like the case of Bella Rose – a policyholder from Duane weber insurance, who called her insurer to pay for damage not covered by her policy. She parked her car out on the lot, only to find her side mirrors missing.
She filed for a claim, but her insurer would not pay for the damage. “I later discovered that my policy only covers liability and collision, not vandalism,” she said. There are different types of auto insurance, read on to find out more;
(1) Liability Coverage
This coverage provides protection from damages and injuries you cause to other people by your driving. Auto insurance offers two kinds of liability coverage – bodily injury liability and property damage liability. Bodily injury liability covers the medical expenses of any injury to the other party as a result of your driving.
Property damage liability gives coverage to the damages you may cause to other people’s property due to an accident. For example, if you hit a vehicle or run into a fence, this coverage will pay the cost.
(2) Medical Payment Protection
This type of auto insurance covers medical bills. It also covers other health-related damages as a result of an accident. In certain instances, where a car accident causes a loss in wages or inability to work, medical payment coverage can cater for that.
(3) Collision Protection
Collision coverage pays the cost of repair or replacement of your car if it gets damaged in a collision. It covers all kinds of collisions.
(4) Comprehensive Coverage
This insurance pays for other forms of damages not related to a collision. For instance, if your car gets damaged as a result of a fire outbreak, natural disaster, or vandalism, your comprehensive coverage will cover the cost.
(5) Uninsured/Underinsured Motorist Protection
This type of auto insurance comes in handy if you are involved in an accident with a driver who does not have liability coverage or is underinsured.
Uninsured/underinsured coverage can be a lifesaver, like in the case of sally a policyholder from Alabama. Her car was hit from the rear and the at-fault driver blamed the wet leaves on the road because he knew his insurance cannot cover the damage.
Auto Insurance Quotes
An insurance quote is the estimated how much you can pay for your auto insurance. Do you know you can pay less and save more with the best kind of auto insurance quotes? For example, Geico insurance offers quotes starting from $1,100 per year when compared to the national average of $1,321 per year. That’s saving $221 every year – about 17%. I bet you don’t know that! Auto insurance quote is not as expensive as you think.
To get the best quote you just have to compare quotes from different insurances companies. You contact them online and get a quote for free!
Best Auto Insurance Companies
If you are on the hunt for the best auto insurance companies in the U.S., you don’t have to look too far. U.S. News has selected the best, but we streamlined it to offer you the best among the bests. You should consider these companies;
1. USAA
USAA is one of the cheapest auto insurance companies with affordable rates. It also has lower premiums and good customer service. The downside of USAA is that you have to be in the military or be connected to the military before buying a policy.
2. Geico
Geico insurance is next after USAA in cheap insurance rates. The good news is, you don’t have to be in the army to use Geico insurance. In addition to that, Geico provides insurance coverage for all kinds of drivers, whether you are a new driver, a senior driver, a good driver, or an under-the-influence driver.
3. State Farm
State Farm has affordable rates, but you have to be a good driver to enjoy these rates. But if your driving record is less than clean, state farm still got you covered, although, you may have to pay more. Nevertheless, when compared to other companies, state farm offers a cheaper rate if you have a speeding ticket. For example, state farm has an average rate of $1,299/year for speeding drivers while Geico offers $1,395/year. You get to save $96 every year with Geico.
4. American Family
American Family also has cheap rates although not like USAA and Geico, it won our category with its after-accident rate. Most insurance companies increase their rates after a car accident, but American family has one of the cheapest after-accident rates. It offers a rate of $1,657 per year while Geico offers $1,735/year. When you insure with an American family, you save $78.
5. Nationwide
Nationwide insurance company is one of the best for speeding tickets and poor credit history. In addition, it is widespread across the states and has good customer service.
6. Travelers
Travelers insurance is good on rates for driving under influence (DUI) drivers. It also offers affordable rates for policyholders with poor credit.
7. Progressive
Progressive insurance is the best insurance company to use if you are a DUI driver. It offers one of the cheapest rates for driving under influence (DUI) as cheap as $1,733. When compared to Travelers insurance ($2,024), you get to save up to $291 per annum.
Now that you have read the auto insurance facts you should know, it’s evident that auto insurance is a lifesaver – or car saver in this case. Think of it as an indirect saving you get to cash out on a rainy day – in an event of a disaster.
Contact an insurance company today to get a quote!
Conclusion
In a nutshell, these 7 fascinating facts about auto insurance bring some hidden gems to light.
By uncovering the factors that sway insurance quotes, grasping the key aspects of auto insurance, understanding the various elements that impact rates, and appreciating the importance of having adequate coverage, you’ll be equipped with valuable insights to navigate the insurance landscape with ease.
So, go forth with this newfound knowledge, make informed choices, and hit the road with peace of mind, knowing that you’re well-prepared for whatever comes your way. Safe travels, my friend!
FAQs
The four main factors that influence the cost of auto insurance quotes are your driving record, the type of vehicle you drive, your age and experience as a driver, and the coverage options you choose.
Three important aspects to understand about auto insurance are the coverage types and limits available, the factors that determine insurance premiums, and the claims process in the event of an accident or damage to your vehicle.
The five primary factors that impact auto insurance rates include your driving record, the make and model of your vehicle, your age and driving experience, your geographical location, and the coverage options and deductibles you select.
While all aspects of auto insurance are important, the most crucial factor is having adequate coverage that protects you financially in the event of an accident or damage. Ensuring that you have the right coverage types and appropriate coverage limits is vital to protect yourself and your assets.
