There are quite a few factors that affect the insurance cost. When you are about to buy auto insurance, which is usually the right way to go, you might want to do a few calculations of your own before deciding to go for the auto insurance. Here are some of the factors worth considering as you question the value of money you will get for the premium. The liability insurance is mandated by law but for other types of auto insurance including collision coverage, comprehensive insurance, etc. you might want to think for a while.
The age of your car
If your car is very old buying auto insurance for it doesn’t really make sense. You can surely go for medical insurance instead of auto collision insurance or comprehensive auto insurance that provide coverage for car damages. In fact, if you consider the case of totalled car, where the car becomes unusable and destined for scrap yard, the compensation you get from the insurance company might not be substantial enough to justify the cost of buying the insurance. This is because the final compensation depends on the market value of your car. So, age is a major factor in influencing a decision on buying insurance.
The car model
The model of the car and the brand influence the insurance cost in a major way. For example, family sized sedans are favoured by insurance companies compared to SUVs in terms of the auto insurance premium you have to pay every month. From the car owners’ perspective, the damage repair cost could be a lot more in case of an expensive sports car compared to a normal hatchback or family sedan. This factor has to be considered when you are trying to figure out the ideal cost for auto owners’ insurance.
The discounts you can garner
If you can garner discounts then it is better to go for auto insurance and cashing in on your profile. There are discounts for a lot of parameters such as good credit history, excellent grades in school for students, clean driving record for the last 3 years or combined insurance policies from the same insurance provider. You can also take driving courses as some insurance providers offer discounts for such certifications as you would be a better driver and a safer customer if you attend driving school.
The mileage
If you drive less you will definitely get auto insurance for a low cost. So there isn’t any reason why you shouldn’t avail that benefit.
