Published On: Wed, Jul 11th, 2018

Key Factors to Consider When Buying Car Insurance

Choosing a car insurance provider can be daunting, especially if this is your first vehicle.

You may simply gravitate towards the most popular insurance brand based on television advertisements or recommendations from friends, without really looking into the options available.

However, it’s well worth investing a little time into research. Each car insurance provider has their own rates, and may be willing to adjust prices to compete with rival companies.

To make sure you secure the best car insurance deal, you have to bear certain key factors in mind.

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How will your driving history affect your rate?

Your driving record has a big impact on the deal a car insurance provider offers you.

Any speeding tickets or previous claims you have made will contribute to your package, increasing your rates. Someone with a clean record can expect to pay lower costs than an individual with a number of tickets or numerous collisions.

If you have any holes in your insurance coverage history, providers are prone to viewing you as a riskier client. Try to minimize any gaps in your insurance whenever possible.

How can your choice of car influence your package?

While you may have a clean driving record, your choice of car can still bump your rates.

If you have a high value car with expensive repair and replacement costs, the company will obviously incorporate this into your package, potentially leaving you with rates far higher than you might have expected.

Vehicles that achieve good scores in crash tests tend to earn reduced insurance costs, so pay attention to this. Insurance brands monitor the number of crashes specific makes and models have been involved in.

As insurers basically try to predict the likelihood of damage, the higher a car’s crash frequency becomes, the larger the insurance rates will be.

Different vehicles fare differently in collisions and accidents. One car may be able to absorb considerable impacts before showing signs of damage, whereas others will be destroyed more easily.

Why does your neighborhood matter?

The place in which you live will determine how much or how little you pay for your car insurance coverage. If your neighborhood has lots of vandalism and theft, or lots of auto insurance claims, your provider is highly unlikely to see you as a low-risk customer.

Locations with higher populations tend to create higher insurance costs, as the more vehicles on a neighborhood’s road equate to higher risks of being involved in an accident.

If you live in an area with significant crime rates, be aware that you may not get the kind of insurance deal you hope for.

What coverage types are available?

The state in which you live can affect what type of insurance you can get. The majority of states only require that you have liability insurance, which covers you for an injury or even a death you may cause while driving. Legal fees and damage costs tend to be included here too.

You may want to consider adding these extras to your car insurance package too:

  • Collision: This kind of insurance contributes to the cost of post-accident repairs, regardless of who’s responsible.


  • Comprehensive: This covers any damage inflicted upon your car due to theft, fire and vandalism.


  • Personal injury protection: This will cover medical costs or loss of income for you or passengers.


  • Uninsured driver protection: This pays for your vehicle’s repairs if they are caused by an uninsured or underinsured driver.

Why should you consider cheapness versus necessity?

While it’s tempting to just go for the cheapest insurance package you can find, you need to consider your financial responsibilities. Adding comprehensive or uninsured driver coverage may seem like the insurer’s attempt to get more money out of you, but you have to consider whether the extra cost is worth it compared to the potential expense of paying for your own repairs or replacements.

There are other perks to getting the best insurance deal you can. Good insurance providers will no doubt be able to connect you with a reliable towing company in your area should you experience a mechanical fault or become involved in an accident.

They may be able to offer you discounts based on certain factors too, such as your car’s safety features (air bags, cutting-edge alarm systems etc.).

Don’t be afraid to ask potential insurance providers what they can offer you compared to their competitors. If they really want your custom, they may be willing to discuss discounts or free extras as incentives.

Author: Salit David

On the DISPATCH: Headlines  Local  Opinion

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