Things to Know About Auto Insurance
First, consider the coverage you’d like to have, versus that which you need to have. The biggest portion of your auto insurance premium provides the required liability coverage. If your car is totaled and you still owe money on an auto loan, this coverage must be able to pay off the balance of the loan to the lender. If you have an older vehicle or no auto loan, you have the option of reducing the amount of coverage – but talk to your insurance agent before making that decision.
There are also many options available when purchasing auto insurance. It may be tempting to decline them all to keep your premium costs down, but don’t be too quick to make that decision. Ask your insurance agent for the costs, and weigh that against the cost in time and money you may pay in the future. Among these options are roadside assistance, rental reimbursement, gap coverage, uninsured driver coverage, and comprehensive coverage. Some, like roadside assistance, may increase your premium only a few dollars, but can save you much more if you ever need it. Comprehensive coverage, on the other hand, can be rather expensive in comparison, but it is far less than collision or liability coverage. Again, an experience insurance agent will be able to help you assess the costs of the various options available.
Another way you can reduce your auto insurance premium is through a higher deductible. This determines how much you will pay out of pocket before the insurance company contributes to a claim. By making this amount as much as you can reasonably afford, you can significantly reduce your premium amount.
The type of car you drive also affects your auto insurance rates. Insurance companies use industry statistics to determine the average cost of repairs by make and model. If your car is determined to be more expensive to repair, you can be sure your insurance premiums will be higher as well. Keep in mind too, that car models that are known to be safer and less likely to incur higher costs will enjoy lower than average insurance premiums. Keep this in mind when shopping for a new auto.
The rate charged by insurance companies can vary greatly from one to another. A little research up front can save you a lot of money on your auto insurance premiums. You won’t be able to negotiate a better price with a given insurance company (since it’s prohibited by law), but you can compare coverage and rates between companies and find the one that is the best fit for your needs and budget.
In addition, insurance companies offer many types of discounts. Be sure to ask which you may qualify for. When it comes to New York auto insurance, you may find discounts for anti-theft devices and other safety features in the car, a safe driving record, payment up front in full or by electronic transaction. In addition, many companies offer additional discounts if you buy multiple types of insurance from them, such as auto and homeowners.
Your driving history can have an impact on the price you are asked to pay for auto insurance. Each insurer evaluates applicants during the underwriting phase, and determines the risk associated based upon many factors. These factors and the weight they are given can vary from company to company, which again means you should do your research before selecting your coverage. Some of the factors commonly taken into consideration include your driving history, including accidents and tickets, as well as prior insurance claims. Keep in mind that although such factors can affect your rates for three years following the incident, insurance companies often look back five years to determine whether they want to offer you coverage at all. In addition, your credit history may be used to evaluate what group of drivers you belong with – which determines the risk the insurance company feels you represent to them.
Finally, do whatever you can to avoid letting your auto insurance policy lapse. Licensed drivers without insurance are considered a greater risk, and are looked at less favorably than those drivers who have had continuous insurance coverage. When an uninsured driver does purchase coverage again, they are likely to find that their premium has gone up due to this perceived risk.
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