What You Need To Know About Rates Car Insurance

Introduction

Evidence of insurance is a legal requirement in all 50 states. A car insurance policy has several sections, and the one that partially controls car insurance rates is the liability section. The higher the liability payout, the more the car insurance rates will be. Lending institutions that handle car loans require the buyer to have specific car insurance coverage amounts for the entire duration of the car loan. The other types of coverage that control car insurance rates, are comprehensive and collision coverage.

When shopping for car insurance rates, start by inspecting your driving record. Most insurance companies offer a “good driver” discount rate if you haven’t had a ticket or accident during the last three years. If you have multiple tickets or accidents on your record, your car insurance rates will be higher.

If you are under the age of 25, you will pay a premium insurance rate. Drivers between the ages of 16 and 20 pay the highest car insurance rates. Statistics show that drivers under the age of 25 have more accidents and receive more tickets than those over the age of 25. Most insurance companies will lower the insurance rates of their long standing customers a little each year, as they approach 25 years of age. For those that are over the age of 50, senior discounts will usually be applied to car insurance rates.

At times an insurance company will give married couples a price break on car insurance rates. Unmarried males usually pay a higher rate than unmarried females. The reason for this is that statistics show that females drive less than men, and when they drive, they are more cautious.

Car insurance rates are also based on how much you drive your car or how many miles you drive to and from work. If you drive a car for business, you will pay a high insurance rate. If you participate in a car pool, you may get a discount rate for helping the environment.

Different makes and models of vehicles have different car insurance rates. The collision and comprehensive coverage’s are based on the value of the vehicle, repair costs, and the risk of theft. Insurance companies also take into account where you park your car. If you park on the street, the car can be prone to damage and theft. A car kept in a garage is considered to be parked in a safe environment.

The deductible, or the amount of out of pocket expense incurred if you have an accident, is another factor of car insurance rates. A higher deductible will reduce the car insurance rates.

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