Best Car Insurance
Is this your first time getting car insurance? Or perhaps, you have had the same policy for a long time and want to explore a different option. No matter which, comparing car insurance rates from various companies is a critical step in helping you get a good deal. We’ve put together a guide so you can learn about what goes into your quote and determine which is the most suitable car insurance you need.
What are the Different Types of Car Insurance Coverage?
When it comes to car insurance policies, everyone’s needs are unique. Most policies include a combination of 6 major types of car insurance coverages, as well as some optional extras.
One of them is Personal Injury Protection (PIP) that’s also known as no-fault insurance. In the event of an accident, PIP covers you or your passengers’ medical expenses regardless of who’s at fault in causing the accident. It may also cover wages lost if you have to miss work following an accident. In certain states where PIP is not compulsory, MedPay is offered instead. This is a streamlined version of PIP that assists in covering hospital expenses incurred by you or your passengers as a result of an accident. MedPay will also cover your medical bills if you’re not in a vehicle but get hit by one.
Next, there’s also Collision Coverage which covers repair costs if your vehicle collides with an object or another vehicle. With the exception of a few states, Collision Coverage is optional if you own your vehicle. However, if you’ve purchased it using a car loan or financing plan, you will almost certainly need to get this coverage. Collision Coverage is usually sold together with Comprehensive Coverage, which pays for non-crash damage to your vehicle, such as theft, vandalism, fire, and weather damage.
Vehicle liability coverage that pays for property damage and/or injuries in an accident where you are at fault, is mandatory in almost every state. If there are injured passengers onboard the other person’s car, liability coverage will pay for their medical expenses as well. Lastly, there is Uninsured or Underinsured Motorist Coverage. If you become a victim of a hit-and-run or become involved in an accident with an uninsured driver, this is where Uninsured or Underinsured Motorist Coverage comes into play. This policy, which is mandated in 22 states, will cover your medical expenditure and vehicle damages if the driver who is at fault didn’t purchase enough insurance to cover your losses.
Understanding Car Insurance Costs
In case you’re wondering about the national average cost of car insurance, it’s $136 a month. As you’re going to be paying for insurance for as long as you drive, you’d probably want to get an affordable policy. However, various factors including your driving history and location determine how much you’ll have to pay. Let’s take a closer look at some of these factors:
- Annual mileage: The more you drive, the more you’re at risk of an accident. A high mileage usually means you have to pay more for your insurance.
- Theft rates: Staying in an area where vandalism and vehicle theft rates are high will lead to higher insurance costs.
- Driving history: You’ll have to pay higher premiums if you have a record of high accident rates
- Vehicle repair costs: Usually, insurance premiums for domestic cars are cheaper compared to foreign cars because the latter may contain parts that are costly to replace.
- Claims record: A higher number of claims filed in the past will raise your insurance cost
- Safety features of your vehicle: Certain safety features may entitle you to discounts but this doesn’t mean your insurance is cheaper, especially if these features are costly to replace or repair.
- How you use your vehicle: If you use your car excessively during peak hours, such as for work or school, the cost of your insurance premiums will be higher.
Car Insurance Costs and Coverage Trends
In 2021, car insurance rates increased 12% and are expected to rise further by 5% in 2022. This is largely due to rising inflation rates last year.
While medium-sized cars continue to be a favorite among American consumers, the 3 most popular vehicles are:
- Honda Civic
- Honda Accord
- Ford F-series Pickup
It’s possible to get discounts up to 16% from your insurers if you’re a low-risk driver with a good track record and have taken part in driver safety programs. This contributes to huge savings in the long run.
How to Find the Best Auto Insurance Comparison Website
Good car insurance comparison websites are the ones that give you the most authentic and accurate quotes. To provide you with the most reliable quote, the website usually requires you to fill up the following information:
- Age, employment status, gender, and marital status
- Education level, driving record, and credit score
- Your car’s brand, model, and year
- Your address and if you own a house
As you hunt for the best car insurance policy, take note of the websites you submit your personal details to. Some of them are lead generation sites that sell your data for money. You’ll get lots of spam emails instead of a quotation.
Comparing Auto Insurance Quotes Starts with Finding the Right Policy
The following steps will help you make a better decision and find the right policy:
- Prepare the information you need to get an accurate quotation
- Use an insurance comparison website and get a list of personalized car insurance quotations
- Compare different policies and choose the one that offers you the best deal
- Otherwise, you can choose to contact the insurer directly and ask to speak with one of their agents
Ways to Compare Cheap Auto Insurance Quotes
- Compare Car Insurance Quotations by Driving History
Insurers use your driving history to determine how likely you are to submit a claim. Speeding tickets, past accidents, and even minor violations can boost your monthly insurance premiums by 20%. Even so, premiums will vary across companies because each of them has different methods of assessing risk. Furthermore, there are companies that specialize in offering insurance to high-risk drivers. Hence, it’s a must to take a look at quotes from different insurers.
- Compare Car Insurance Quotations by Age
The cost of car insurance differs significantly across people of different age groups. Drivers below 25 are typically classified as high-risk drivers, meaning they incur higher insurance premiums. The good news is that insurance becomes cheaper as you age and gain more driving experience. Adults in their 30s pay about 55% less compared to teenagers. Those in their 40s pay much less, with insurance rates continuing to drop as they reach their 50s and 60s. But this changes once a driver hits the age of 80. They have to pay roughly 21% more for their car insurance compared to those in their 60s.
- Compare Car Insurance Quotations by State
Location plays a part in determining how much you pay for your car insurance. Factors such as crime rates, weather, and population in your state are some of the factors that affect your insurance costs. Those who live in the city are likely to pay more than rural or suburban dwellers. That’s because more cars and people also mean higher chances of accidents or car thefts. In addition, if you live in areas where there are frequent floods or other types of adverse weather conditions, you can expect insurance costs to be higher.
- Compare Car Insurance Quotations by Make and Model
Insurance companies also consider your car model. Typically, new car models or luxury cars cost more to insure as it’s more expensive to repair or replace their parts. The most expensive car brands to insure in the United States are Tesla, Maserati, and Alfa Romeo. On the other hand, the 3 cheapest cars to insure are Subaru, Buick, and Fiat.
- Compare Car Insurance Quotations by Credit Score
Insurers will assess your credit score when calculating your premiums. Generally, drivers with poor credit scores have to pay 55% more than those with excellent credit scores.
Tips to Get Cheaper Auto Insurance Coverage
Many online platforms offer a convenient way for you to search and compare car insurance quotes for free. They provide you with a list of quotations from different insurers that are customized to your driving profile. Most of them also offer discounts for military personnel or veteran drivers, so do a comparison and see which one gives you the best offer.
What You Need to Know about Auto Insurance Deductibles
This is the sum of money you have to pay before your car insurance coverage kicks in. If you’ve chosen a $500 deductible, this is the sum you need to fork out before your insurance pays for your claims. In general, the greater your deductible, the lesser your monthly premium. You might be tempted to choose the option with the cheapest premium, but make sure the deductible is an amount you can afford if you need to file a claim.
Car Insurance Comparison FAQs
We suggest you compare quotations from at least 5 different insurance companies.
The easiest way is to do a comparison of different quotations online. You only need to provide some personal details and information about your car model and driving history to get a quote.
On average, male drivers pay 8% more than female drivers.
Yes, you can. The easiest way to do so is to use an insurance comparison website. Ensure you compare quotations from at least 5 different companies before you decide on which one to get.
The average monthly cost of a car insurance policy is $136 per month but this depends on several factors such as your location, driving history, and coverage level. Younger drivers can expect to pay more than older adults with years of driving experience behind them.
If you have any questions about car insurance, feel free to call us at 718-739-9090 or send an email to [email protected].