Enter Your ZIP Code

Auto Insurance – Facts You Should Know


Most people just don’t take the time to review their auto insurance coverage. They just leave everything else to their insurance agent. What most people don’t realize is that getting the wrong coverage is no different in having no insurance at all. In this tough time, people must take time to educate themselves about their insurance coverage. It will not only protect them but it can also save them money.

Before you sign your insurance policy, take some time to review the coverage it offers. You may avail of additional coverage that might save you from a lot of troubles. Additional coverage such as; roadside assistance or comprehensive assistance are some things to consider. Try to talk discuss these things with your insurance agent.

Insurance companies are experts when it comes to risk evaluation. These companies group their clients according to risk factors. Always take into account that the lower the risk the lower your pay for premium.

Your residence

Auto insurance companies give you lower premium if you live in the rural areas. The reason behind this is that rural areas have less traffic and therefore you have less chances of getting into an accident – unlike in cities where traffic is high. Insurance companies also look at how many miles and how often you drive. If you drive in short distances and if you seldom drive, there is less risk involved.

Driving and claims record

A clean driving record can qualify you for discounts. Speeding tickets and other driving violations will increase your risk factor. You’ll be charged a higher premium if you are a reckless driver, so maintain a clean driving record. Moreover, the more claims you previously had the more of a risk you are.

Credit score

Credit score can be used to evaluate your potential risk. Lending institutions use credit score to evaluate if you qualify for a loan. With auto insurance, a high credit score reflects positive personal responsibility.

Type of vehicle

Did you know that the type of vehicle you drive affects the cost of your premium? Luxury cars have more expensive replacement parts than a sedan. Obviously, auto insurance companies will charge you a higher premium for expensive vehicles.

There are a lot of ways to save on your insurance premium. Your insurance agent might not tell you all. However, it is your responsibility to educate yourself and asking your insurance agent won’t hurt. The best way to get the lowest premium is to search online for insurance companies. Compare their premium costs and compare it to your local insurance companies.