Shopping for Car Insurance - Outlining Your Value

Shopping for Car Insurance - Outlining Your Value

Almost every state in the United States requires that you carry liability insurance on your vehicle. This is coverage that pays for property damage and personal injury claims if you damage someone else's car or if you cause injury yourself.

If you are a car owner, you will have liability insurance anyway. However, this does not mean you have to accept the first quote that you get. Be a smart shopper and request free quotes from several insurance companies. This is how the insurance bureaus take into account previous driving records, accident history, and other factors that affect your rates.

Besides this, there are other things that can affect your premium such as ...

1. Your vehicle's value. The more expensive your vehicle is the higher your premium is going to be.

2. The insurer's credit rating. Good or bad credit doesn't have a whole lot to do with how much you pay for your vehicle insurance. It does have an impact on how much you will pay for claims though.

3. The area you live in. If you do live in the city your rates will be higher than if you live in a rural area. This is because you have a higher risk of theft and vandalism.

4. Insurance score. This is how insurance companies determine whether you are a good risk for their company. The score is based on your credit history and how likely you are to pay your premiums on time. Negative marks on your credit record means you will pay more for your cover.

5. How much you drive. This is a very large factor in determining how much you pay for your cover. The more miles you drive a day the higher your rates will be.

6. Where you park. This is another very large factor in determining your rates. You will pay more if you park in the street or on a busy street versus a covered area of garage. The reason for this is the higher risk for theft and vandalism.

7. How secure you vehicle is. This is another factor that has a lot of impact on rates. While many people don't give it much thought it is a major factor in determining your rates. If you have a good theft proof immobilizer installed in your vehicle you will pay less for your premiums.

8. What you drive. If you drive in a place filled with crime your cover will be higher because you will be more likely to have a claim.

9. Your credit score. Believe it or not this can make a significant difference in your premiums. This is why it is important to shop annually and the way you do this is by getting and comparing quotes from several companies.

10. How much you drive. This is the biggest factor in determining your rates. The more you drive the more chance you have of being involved in an accident.

Reducing your driving will help you save on your cover. however, it is also required by law in most places. Use public transport or car pool to reduce the amount of miles you drive a day. You can also enroll in a tele survival program. Also have a good credit score and you will pay far less for your cover.

Also, remember cheapest is not always best. Make sure your company is reliable and pays you if you are ever involved in a mishap.

Lastly, set up an auto pay plan so your premium is paid automatically each month. You don't have to worry about missing a payment and learning about a grace period for payment can help you keep your rates low.

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