Introduction
Insurance companies will typically use a host of factors to determine the insurance premiums their customers will pay, as they try to get car insurance. Some of the common factors insurance companies will consider to come up with an insurance quote include, your age, marital status, what you drive and where you live.
Step 1
You should consider the amount of coverage you need while you get car insurance. There are different types of coverage, which will provide a different level of protection in the event of an accident.
Step 2
These include:
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Body injury liability: this policies injury and death claims against you, and any legal costs if your car hurts or kills somebody.
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Property damage liability: this policies claims for property damaged by your car in the event of an accident.
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Medical payments: this policies the cost medical fees for yourself and the occupants of your car, in the event of an accident.
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Collision coverage: this provides coverage for damages on your car, up to its book value. It often carries a deductible, which is the amount of money you pay before the insurance kicks in. The higher the deductible, the lower your premiums will be.
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Uninsured motorist protection: this provides coverage for injuries caused to you and the occupants of your car by an uninsured or hit-and-run driver.
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Comprehensive coverage: policies damages to your car as a result of theft, fire, vandalism, flood, wind, or any other non-accident related causes. It also carries a deductible, which you should consider as you get car insurance.
Step 3
Some of these policies are mandatory in some states, while others are not. You should decide the type of coverage that is important to you, as you get car insurance.
Step 4
The car you choose will be a big determinant on the premiums you pay. You may be looking for an SUV or sports car, but your insurance company will charge your more to get car insurance. Insurance premiums are also based partly on the price of the car, in terms of determining its replacement cost due to theft or an accident.
Step 5
Surcharges may also be added to insure cars that are frequently involved in accidents or stolen. You can access information on collision repair costs, injury claims and theft rates by vehicle model from the Highway Loss Data college (HLDI), while you get car insurance. However, insurance companies will set rates based on their own experience.
Tips and Comments
Insurance companies will also assess your age, gender and driving history to determine the premiums you will pay as you get car insurance. Single men under the age of 25 are typically charge higher rates, then women in the same age group. This is because statistics tend to show that men in this category are more prone to be involved in car accidents. However, some states do not allow discrimination on rates based on age or sex.
Drivers with a clean driving record (free of accidents or traffic violations) will often pay the lowest rates, as they get car insurance. The area you live in will also play a vital role in determining your insurance premiums.
