5 Things to Know About Car Insurance

Car insurance can be a tricky thing. Even though it’s a great safeguard in case you get in an accident or suffer damage to your vehicle, it’s also required across much of the United States. It can be difficult to decipher what type of policy that you need, especially since you’ll have to take note about if it satisfies legal requirements for insurance.

Here are a few things to know about car insurance for your own knowledge, and to help you find the right policy for your needs.

Insurance Coverage Varies: Drivers in California need liability insurance. This is to protect you and other drivers in case of an accident. Coverage usually includes limits for injuries per person, injury per accident, and other property damage.

Cost Depends on Statistics: Insurance companies often assign prices for different coverages based on statistics. For example, teenage drivers have statistically been shown to be high-risk drivers, and insurance companies charge for coverage accordingly.

Others will use your driving record and even your zip code and credit score to come up with a rate that’s based on these types of statistical metrics. Some states limit what type of statistics insurance companies can use to come up with rates. Using a credit score as a risk indicator for insurance is not allowed in California.

Buy Before You Drive: It’s important to secure car insurance before driving, and before the actual car-buying process. Shopping around early for insurance will help you with the car budget because you’ll have an idea about your premium. It’s important to not have a lapse in coverage between policy terms for your insurance. Otherwise, don’t be afraid to switch up your insurance. If you add a new driver, or feel that your rates are jumping up too high, then start shopping around for new quotes.

Click here to learn the risks of not purchasing auto insurance!

You Can Lower Your Rates: It’s certainly possible to lower car insurance rates to a certain extent. For example, maintaining a clean driving record can go a long way towards keeping rates lower in the future. Other strategies include sharing a policy with someone else, bundling car insurance with a homeowners policy, or paying your premiums early. These tips could help you make a stronger case for lower rates in the future, but it is not guaranteed.

Keep these five things to know in the back of your head as you hit the road.

Do you have a question about car insurance? Click here to contact Partners Direct Insurance Services today!

Courtesy of Cuselleration