What factors should I consider in choosing the best car insurance policy?


Car insurance policy shoppers look into a hundred things in choosing their auto insurance policies – from their cars, their status and a lot more. But in choosing a car insurance policy, here are the few factors that actually matter.

  1. Your state or country’s minimum legal insurance policy requirements
    Most states have a standard insurance policy as a requirement. These standards vary from state to state or area to area. It is important to know your area’s minimum insurance requirements.
  2. Your type of car
    Realize that some cars are at a greater risk of being stolen than others. In fact, insurance company data state that sports cars are among those with the highest tendency of being stolen, especially when compared to less flashy family cars. Installed alarm systems can also affect your insurance premium.
  3. Your driving history
    Look into your history of tickets for traffic violations, as well as vehicle-related accidents. The higher the number of your automobile-related incidents/accidents, then the higher your car insurance coverage premium would be.
  4. Your area of residence
    Insurance companies also take into consideration your area of residence in relation to your workplace or routine destinations. This distance may be simplified with the word mileage. The farther away your workplace from your home, the greater the distance you travel or your mileage. And the greater your mileage, the greater your risk for accidents. Thus, car insurance companies may ask for greater premiums with longer mileage.
  5. Your frequency of driving
    Of course, the more you use your car, then the more at risk you are for vehicle-related accidents. So if you use your car on a daily basis, expect to have a higher premium as compared to those people who use their cars only on certain days of the week.
  6. Your personal information
    Car insurance providers demand different rates for different age groups, genders and civil status. Individual rates are based on statistics and sadly, research states that the risk for accident is highest in single males less than 25 years old. So if you belong to this group, expect a higher insurance rate.
  7. Your budget
    How much you are willing to pay for car insurance also plays an important part in choosing your auto insurance coverage.  Do sufficient research and ask for quotes from various insurance companies so you can have a lot of options to choose from.