How Much Car Insurance Is Enough?

When car insurance is to be bought you start to wonder how much it's going to cost you. You obviously don't want it to cost you an arm and leg. At the same time, you don't want to be caught in the lurch without adequate funds to pay for damages when it comes to making a claim. But let's think for a minute. Car insurance doesn't have to cost you so much. It's a question of figuring out how much you need to adequately cover your assets and needs. And while you're at it, you can actually end up spending a few big bucks as well, if you're being watchful. Don't make the mistake of buying minimum coverage just to save some money. Let's take a look at ways in which you can buy adequate car insurance coverage and save some money as well:

1) When you should buy comprehensive insurance

Comprehensive coverage pays for damages caused by floods, storms, hail, theft, riot, fire, vandalism, falling trees, damaged caused by animals (example: hitting a deer). If your car hasn't been paid off yet, you might be required to carry comprehensive insurance. But if you haven't bought your car in a loan, comprehensive insurance might not be needed. You should buy comprehensive coverage if your car has a high resale value; as a way to protect your investment. Also, if you stay in an area with a high theft rate or an area where storms, thunderstorms etc, are common, you might want to consider buying comprehensive coverage for your car.

2) When you should drop collision and comprehensive car on your vehicle

As the name suggests, collision insurance pays for damages caused to your vehicle when your vehicle has a collision with another vehicle or object. As the years go by, the value of your car decreases. So when you think about it, there'll come a point somewhere down the line where the cost of fixing the damages to your car (in the event of an accident) will exceed the current value of the car. When you think about it, carrying collision and comprehensive coverage on an older car might not make a lot of sense. To find out the present value of your car, visit the Kelley Blue Book website. The website will give you an estimate for what your car is currently worth, after which you can decide whether or not you wish to carry collision and comprehensive coverage on your car.

3) Find out about the different kinds discounts offered by insurance companies

Often people are unaware of the different kinds of ways in which they could save on auto insurance. For instance, insurance companies offer different kinds of discounts such as good student discount, low mileage discount, defensive driver discount etc. These discounts benefit people of different age groups and give almost everyone a great chance to save money on car insurance. It pays to do your research well and be very sure of what kind of coverage pays for what. And while you're at it, find out about the different kinds of discounts that you might be eligible for.

Car insurance doesn't have to be tricky business. You can be adequately covered for less if you're watchful.

Navigating the Auto Insurance Maze

The nuances of auto insurance has always made little sense to those on the "outside" of the business. Here are some basic guidelines for what determines your auto insurance rate and how you can help save money on your policy.

When it comes to auto insurance, there's a lot of factors to consider on both your part and your agent's, and at times it can be overwhelming or downright inexplicable. Some companies will give you a certain rate that seems completely outrageous, or your average, decidedly non-sporty sedan may have a premium that is way too high for the kind of vehicle it is. Today we'll be going over some of the factors that go into determining these rates, and what you can possibly do to lower them as best as you can.

The first and foremost factor for many states is your location, which determines the safety of your daily driving habits as well as your risk level when you commute and travel. In some states such as California, there are limitations on the impact of your location and how it can affect your policy. Although California primarily considers your driving record and mileage as means of determining your rates, your location is an undeniable factor as well. Studies from various national providers with aggregated data have proven that even a difference of 50-100 miles can have a significant effect.

Granted, for most people, relocation to lower their auto insurance rates isn't exactly the most feasible option. But everyone's circumstance differs, and if you just so happen to be in such a position before renewal, it's something to consider. Alternatively, if you plan on moving soon, keep the insurance rates in mind as one potential factor that can weigh down your cost of living.

Another key factor, of course, is your driving record itself. No matter where you live, if your record is poor your rates will be higher, simple as that. For this, there isn't much else to recommend except to stay safe on the roads. Accidents will happen and are unavoidable, but as long as you do your part to drive safely and defensively, particularly in the more aggressive urbanized areas, you can reduce the risks you take daily. Most companies have incentives and discounts for good driving records, saving you hundreds of dollars annually if you qualify.

One of the most unexpected factors can also the kind of car you're driving. While this may seem obvious, sometimes the most mundane car may have surprising rates. One would typically expect an expensive import or a high-end sports car to have high premiums, not an average sedan. However, rates are not only determined by the cost of repair in the event of an accident, but the vehicle's loss history as well. In other words, if a specific kind of car has a lot of claims filed by other drivers, the rate will increase even if that vehicle has a reputation for being safe or uninteresting.

Once again, we come to a situation where your individual circumstance is important. Some people don't like to own cars and prefer to lease the latest, which will invariably keep their premiums higher. Others do as much as they can to keep their cars in use as long as possible, which will inevitably cause rates to lower as the risk decreases over time. If you're in a position to buy a new car, the insurance rates are something important to keep in mind as part of your ongoing cost of ownership.

Ultimately there are dozens more factors involved and the ones we just went over only touch on the tip of the iceberg. Be sure to speak with an authorized insurance agent and go over exactly what your situation is and request a quote. Once you've done that, don't be afraid to shop around and ask three, four or even more other providers. Since everyone calculates their rates differently, you'll never know if you're getting the best pricing you can without a fair bit of legwork.

Question and Answer Session on Gap Insurance, Often Referred to As Shortfall Insurance

Question & Session on Gap Insurance?

What is Gap Insurance? Often referred to as Shortfall Insurance.

Gap Insurance is an acronym for Guaranteed Asset Protection Insurance. It's all in the name as it provides guaranteed protection for your asset. In this case, your asset is your vehicle. Gap Insurance protects the original invoice price you paid for your vehicle. It in theory, ring fences this invoice price and writes it in the sand.

Given that your comprehensive insurer will only pay you the market value of your vehicle (car, motorbike, van or motor home) the day it is written off or stolen, you are guaranteed to be left with a financial loss. Shortfall Insurance will supplement your comprehensive insurance and protect you against this financial loss, by paying you the outstanding GAP which would have occurred.

Why is Gap Insurance important?

Two basic facts: 600,000 vehicles are written off each year in the United Kingdom and the average vehicle deprecates by up to 50% in the first three years.

Who is Gap Insurance for?

All drivers of any age (17 onwards obviously), any sex, any location, any vehicle, etc. This is because no matter your age, sex, location or what vehicle you have, no one is immune from having their vehicle written off. Not even your favourite superhero!

What are the different levels of cover?

The three most popular Shortfall Insurance policy types are: Return to Invoice, Vehicle Replacement and Contract & Finance Gap.

Return to Invoice is designed to return you, the driver to the original invoice price you paid for your vehicle.

Vehicle Replacement is designed to protect you against any additional increase in the original invoice price you paid for your vehicle. The invoice price may increase for a range of reasons, most notably if the manufacturer introduces an upgraded version of your model or say, if the government increase VAT.

Contract & Finance Gap is designed to protect you against the financial agreement you have taken out in order to purchase your vehicle. Examples of finance agreements are: Contract Hire or Finance/Lease Hire.

Where should I purchase Gap Insurance?

By searching online, you can find prices for as low as £39.99 inclusive of insurance premium tax. Before you purchase your policy type, ensure that the company involved is protected by the government ran, Financial Compensation Scheme, which means if in the case the company folds (just for example), you will remain fully protected by Shortfall Insurance.

But I was quoted £395 by the dealership?

The average Gap Insurance price at the dealership is £395. In fact, we have even dealt with customers who have been quoted as much as £1000. By shopping online, you can find policies for as low as 85% of the average dealership price. This is down to a range of reasons. Firstly, the different rate of Insurance Premium Tax (IPT) online providers and dealerships both pay. Online providers are expected to pay 6% IPT, while dealerships pay 20%.

Secondly, dealerships can only sell Gap Insurance to vehicles that they have directly sold. Online providers can sell Shortfall Insurance to anyone. Thirdly, the basic running costs of the two businesses. Online providers to no surprise have little costs, for example, building maintenance and staff, while dealerships have considerable large running costs.

Cheap Car Insurance - How to Reduce the Cost of Owning a Car

Car insurance is insurance that is purchased for cars, trucks, motorcycles and other vehicles. The primary aim of a car insurance is to provide financial protection against any physical damage and/or injury to people that may be caused due to a traffic collision and also against liabilities that might arise from them. It is mandatory for cars and it adds up to the cost of owning a car. So it has now become a necessity to get a cheap insurance especially when the cost of owning a car has been on the rise.

Cheap Insurance is something that many insurance companies might boast of. But it is a known fact that not all insurance companies are the same. With loads of companies willing to provide you with cheap car insurance, the first step would be to collect insurance quotes from as many insurance companies as possible. Compare the quotes along with the claim procedures and the conditions of the insurance companies before you decide on the company who is going to provide you with cheap car insurance.

The cost of your car insurance is determined by the type of car you drive. Cars that are prone to theft and certain makes and models cost more to insure. If you are looking for cheap insurance, then be wary about the car model you have. Safer cars will help you get cheap insurance. If safety equipment and anti theft device are fitted on to your car, the chances of theft is reduced and this can help you in getting them cheap. Make sure that the company is wary of the fact that you have safety equipment on your car to strike a good deal for cheap insurance. The deductible amount is the amount that you will pay first out of a claim. This has direct impact on the cost of your policy. To get a cheap deal you can increase the deductible provided you are confident of your driving and are prepared to take the risk. If you are having a relationship with an insurance company, you can bargain for good discounts and thereby landing up with a good deal. The companies do offer good discounts for multiple policies. The internet is a great resource to find an online broker who is giving out good discounts. Above all, drive carefully - How you drive also determines the cost of your car insurance. Cheap car insurance is easier for a safe driver as there are good safe driver discounts that are on offer from the insurance companies.

If you are looking for cheap car insurance, then be prepared to spend some time for it. Get comparable quotes from various companies and analyze them before you make up your mind. The tips mentioned above will help you get the best deals from the top insurance companies, so just go ahead and start looking out for the best cheap insurance for your car.

Tips to Get Cheaper Car Insurance

Auto Insurance Costs

This article discusses a handful of guidelines for tips to get cheaper car insurance, prevent sizeable cost increases and avoid being designated as a high-risk likelihood.

Insurance agencies take into regard quite a few components before they supply you with auto insurance. Below are a few of the basic concerns built into compiling your auto insurance costs.

A Healthy Driver's History

Undertake enhanced driver's lessons to further improve your risk-performance.

Your Financial Record

Progressively more auto insurance vendors have established examining end-user financial data, to decide whether to issue or continue insurance coverage, or to make a decision on just what to charge.

The Demographics

If you are residing in a location that has high numbers of thefts for your make and model of motor vehicle, then you'll pay elevated rates. This is because your vehicle has got a much higher probability of getting stolen, or defaced.

Including Further Drivers to the Policy

Including an approved driver to your insurance policy can either, build up or lower your rates, based on the designated road users age, gender and driver's track record.

Including a younger car owner is sure to increase your rates, especially if they come with an inadequate or inferior dmv driver history record.

Also, including a car owner over thirty years old, having an extended and spotless drivers history can cut charges, even more so if the approved motorist is a female!

Age and Gender

Women are statistic less likely to have an accident and, if this were the case, it is not as likely to be as substantial. As a consequence of these stats, females gain from reduced insurance costs.

It is equally worth noting, that if you make up one half of a married couple, you'll want to give some thought to using the female as the principal motorist, with the guy as the additional driver.

Car Insurance Discount for Being Married

A married person will end up paying less as compared to a someone unwed with an identical drivers review. Should you be a teen car owner, get a more mature motorist, or a female driver, added to your policy as a named driver.

Your Career

There are actually careers that insurance organizations have a look at as low risk. You are privileged if you are categorized as the class of those with reduced risk professions, as there's a good chance to get discounts from the majority of insurers.

Due to the fact not all vendors will likely be the equal, it's wise to shop around to start with, to ascertain if you are likely to be given a reduced cost on your insurance as a consequence of your job.

Makes of Motor Vehicles

The kind of auto you use, or would like, has a bearing on the cost of insurance for any bodily damage it gets caught up in. Insurance vendors analyze a car with respect to its risk-free expectation and financial damage burden.

Your Vehicle's Security

Stick a computerized central locking and burglar alarm in your car. Rate reductions will be provided by insurance services when you have safety systems installed in your car.

Although it's a given, that auto insurance doesn't seem to be getting any less expensive, you never need to ruin your month to month financial position in order to find the money for your insurance premiums.

Paying attention to the above-mentioned recommendations, on tips to get cheaper car insurance, will surely allow you to get the savings you want.

Tips To Find Cheap Auto Insurance That Offers The Coverage You Truly Need

Learn how to shop for cheap but good auto insurance. Finding a policy that is affordable, yet provides you the coverage you need. Saving money is a great financial goal, but don't make the mistake of always selecting the cheapest offer. Learn more about car insurance programs and find some real tips to help get the coverage you need. Here is some information on how to learn to shop for car insurance that is cheap and good.

Begin with the Insurance Selection Process

Drivers need to select the type of insurance coverage that they wish to purchase. There are four types to choose from: liability, collision, comprehensive and under or uninsured motorist coverage. The first thing to do is to assess the insurance needs of the vehicle. For example, evaluate if the car can be replaced. If a car is used then liability coverage is often the best option.

Liability coverage covers the other driver and their passengers after a collision. Vehicles that are owned by policy holders are not covered by its property damage or medical coverage amounts. It can be very cost effective for people who want good coverage that is affordable. The states do not require anything beyond liability coverage so drivers with this coverage are acting in accordance with the law.

Collision coverage is great for vehicles that are too expensive to repair or are financed by auto loan lenders. This coverage covers property damage and medical bills caused by collisions. Drivers are responsible for a portion of the costs which is known as a deductible. One way to save money with this type of policy is to set a higher deductible amount.

Comprehensive coverage is a type of insurance that deals with protecting cars in the event of a fire, theft, act of vandalism, or weather event. Cars are expensive and hard to replace so this type of coverage is very beneficial to have. Under/uninsured motorist coverage covers the gaps if the amount of coverage that a driver has is not enough to cover the damages. Many people break the law and drive while uninsured so having this form of protection is a great way for people to cover themselves from financial implications.

Engage in Comparison Shopping

The Internet is the best place for consumers to find cheap insurance options. The best way to do this is to request insurance quotes. The quotes are based upon the geographic location where the driver resides, the age and gender of the driver and the type of policy that will be underwritten. When conducting the quotes process, individuals need to select the same options or the premium rates will vary substantially.

People should search for discounts from insurers as well. There are good driver, good student, military and even group based discounts out there. Each insurer has something different to bring to the table so while shopping, drivers should visit the websites of the insurance companies listed to research which discounts they offer. This can make a big difference in the final premium rate.

Once this has been completed, drivers should compare the quotes side by side and see how much coverage they will have and what they will have to pay for it. The best rule to follow is to choose the policy with the most coverage that fits the budget. It often comes in handy to pay a bit more to secure more financial protection.

Cheap Auto Insurance: How To Get The Best Deal Possible

Insuring your vehicle is a serious matter, not just because the law states that it must be done but because the extent of the coverage secured is important if the best protection is to be secured. Unlike other financial matters, cheap auto insurance is not just about how much is paid but the quality of the coverage bought too.

It is always worth spending time searching on the Internet as it is really the only way of securing low insurance premiums with the right degree of protection too. For many people, the cheapest premiums effectively cost much more because certain types of coverage are removed to lower the price.

So how can a top quality auto insurance policy be secured without costing the earth? What are the priorities that everyone should have when searching for a policy? And what provisions should be included in the policy?

What Coverage Should Your Policy Have

Probably the trickiest part of getting effective cheap auto insurance is to identify what types of coverage are really necessary. Insurance brokers offer a wide selection of choices, many of which are not actually needed. But which ones can be excluded from a policy, and which ones are essential?

While fire and theft, and collision coverage are all standard, it is a good idea to consider what other elements are actually needed and if rejecting them will result in securing a low insurance premium. For example, Uninsured Motorist Coverage covers the driver and all passengers for injuries sustained I an accident on the condition that accident responsibility rests on the other driver.

Other such aspects that may not be needed are Roadside Assistance (especially if your vehicle is new), or Accident Forgiveness, which protects your premium even after a claim. Experienced drivers with an excellent record may not need this extra expense on their auto insurance.

Extra Provisions To Consider

Of course, all of the extra provisions on a policy can be useful, but when trying to ensure a cheap auto insurance policy it is necessary to weed out what is not needed. So, what are the additional provisions that might be worth keeping?

Collision Coverage entitles the driver to a claim even when the accident is their fault. This can be useful because it can be very costly to pay for an accident alone. Bear in mind, however, that this coverage requires some careful budgeting to ensure adequate funds are available.

Securing low insurance premiums can also be done by clumping elements together. For example Comprehensive Coverage means that damage to your vehicle due to a variety of reasons - storm vandalism, fire etc - other than a collision is covered too. The auto insurance policy is general but it covers almost every eventuality.

Choosing The Right Insurance Provider

Looking at the specifics of a cheap auto insurance policy is perfectly fine, but it is essential that the right insurance provider is found too. Often, the two go hand-in-hand, but at times the reputation of the independent insurance provider might not be too good.

So, before deciding on a policy, make a shortlist of companies that meet your needs, and check their reputation on the Department of Insurance website. Policies from those companies that satisfy your standard can then be examined more closely.

Of course, securing low insurance premiums starts with seeking an official quote from the company, so contact them directly. Then, the policies and quotes can be compared, until the best auto insurance policy is identified. Once this is done, your vehicle can be covered effectively and affordably.

Car Insurance Quotes - What Information Will Your Insurer Ask For?

The process of getting car insurance quotes starts with the insurer asking you for certain information. You will find yourself answering the same questions to every insurer that you get in touch with since this helps them put together a policy for you. This data helps the insurer offer you a policy at a certain premium since there is no one size that fits all when it comes to insurance. You therefore have to have the answers to these questions handy. The information that a vehicle insurer generally looks for includes:

1. Details of the car in question. Basic details include the make and model of the car as well as its year of manufacture and its VIN number.

2. Safety information. Insurers like to know whether a car has sufficient safety features or not because this helps them assess the amount of risk involved in insuring it. If a vehicle is fitted with ant- theft systems, air bags and anti lock brakes then the risk of having to pay out on the policy is small. As a result, you will get a discount on the premium.

3. Usage information: You will also be asked for the mileage of the vehicle because this helps determine how much the car will be used and therefore the risk of having an accident. People who drive to work generally have to pay more for insurance than people who only use the vehicle occasionally.

4. Your place of residence: Insurers tend to offer lower rates to people who live in rural or semi-rural areas because these areas tend to see fewer car accidents than urban areas.

5. The number of people who will drive the vehicle. In addition, the insurer will also want to know the ages and driving records of all these people in order to determine the overall risk of providing an insurance policy to the vehicle.

6. Any information that will help you qualify for a discount. Apart from the safety features of the car which have been mentioned above, you should also provide details on driving classes that have been undertaken.

It is best to keep your old insurance document handy when you start the process of renewal by contacting a number of vehicle insurance companies. It will have a lot of the data you require and you will therefore be able to get the job done very quickly and with the least amount of effort.

Some Things to Know About Auto Insurance

Knowing the details regarding auto insurance can be quite challenging. If you've saved a large amount of money, getting some liability insurance will be a good idea. At times, having to answer for the repairs, even the minor ones, for the other individual's car could cost more compared to spending for your own injuries. In case you don't have enough coverage, you can be sued for the differences. Thus, having total coverage pays off for the long-term.

In obtaining auto insurance, it's vital to remember that it only insures the driver of the vehicle that's on the policy, i.e. you and you only. If there are other people who drive your car regularly, you can get coverage for them. Doing so might save you the need to spend on any repairs whenever you've no hand in any incident but this does come at a higher cost.

Bundling plans may let you pay less. Simply put, bundling these offers can be beneficial, just make sure that you do some computations so you'll know if the premiums are affordable enough. In case they're not, you should just get separate policies instead.

You don't need to switch cars to keep premiums low. Getting better quotes means only needing to have just one name on every car. Even if the car already has had several repairs, the goal here is to keep premiums manageable.

You can begin saving money ASAP by raising your deductibles. It's risky since you're going to be responsible for the payments of higher deductibles if there's a claim. You could save more on premiums once you pay higher deductibles.

The rates relating to auto insurance fluctuate and depend on where you're living. Rates differ because of the chance of accidents and/or thefts. The more times you get to visit your car repair professional, the higher the max price will be. Both suburban as well as rural areas are usually cheaper compared to cities.

You could save a pretty sum if you've got into an accident and have excellent coverage. A policy is going to have an individual pay predetermined amounts, known as deductibles, plus any costs over the deductibles are going to be taken care of by the insurance.

This ought to take care of the car repairs that your car might need. Getting affordable auto insurance shouldn't be that difficult since you'll be able to lower those premiums by knowing just what to do.

A Guide to Taxi Insurance

Black Cab Insurance

Black cabs one of the most recognisable vehicles on the road in the UK. However despite their popularity their future is not guaranteed. They can be quite expensive to run and insurance is only offered by a few larger insurance providers. The cost of a black cab insurance policy will depend on a few different factors such as the driver's age, claims history etc. and where the cab is being driven. Whether the cab is public hire or private hire only will also impact price.

Private Hire Vs Public Hire

The two main types of taxi insurance are public hire insurance and private hire insurance. This applies whether it's a black cab, minicab or a minibus. How the taxi is used has a big impact on the price and therefore insurance providers will want to know this information before they can calculate the cost of a policy.

Public hire taxis are able to be hailed on the street as well as being pre-booked by phone. They are the most common type of taxi out of the two. Private hire only taxis are only able to be pre-booked and cannot display a 'taxi' sign like public hire taxis. Private hire taxis are typically at less risk than public hire taxis and therefore will usually cost less to insure.

Fleet Insurance

Although a lot of taxi firms now employ owner drivers who take care of their own insurance, MOT etc. There are still a good number of firms out there who insure their own vehicles. In this case fleet insurance is nearly always opted for. It makes sense as not only does fleet insurance work out cheaper than insuring vehicles individually but it's also a much more efficient way of doing things. When all the taxis are insured under one policy it's a lot quicker and easier to make a claim compared to searching out a specific vehicle's policy details

Additional Insurance Options

In addition to the main types of cover that are available with taxi insurance policies, many taxi drivers opt for additional cover for more protection. Some of the most popular types of additional cover include -

• Breakdown Assistance - Essential for taxi drivers. Their cab is how they make a living so when it breaks it's essential to get it back on the road ASAP
• Replacement Vehicle - This is a very useful type of cover and will ensure there's no loss of earnings if the taxi needs major repairs.
• Loss of Earnings - If for whatever reason you're unable to work for a period of time then you'll be compensated if you have loss of earnings included in your policy
• Personal Injury - It's an unfortunate fact of life but taxi driving can be a very dangerous profession. There's always the possibility of being attacked by abusive passengers so personal injury insurance is something that an increasing number of taxi drivers choose to get

Keeping Killeen Kids Safe on the Road

Killeen is a fast-paced city, quickly growing, in close proximity to Fort Hood, the largest military base in the United States. From 2000 to 2010, Killeen grew by 47.19%! That's an astounding amount of growth. (Compare to Texas as a whole at 20.59%.)

With new growth comes new drivers, and with more of our kids on the road than ever before, it falls to us to properly arm them for driving, both with information and insurance. According to the Texas Department of Motor Vehicles, 2.6 million Texas drivers go without minimum required insurance. Don't be a part of this statistic--and don't allow your children to be, either. With the recent account of Killeen 16 and 17 year olds fleeing the police, we must confront the harsh reality that Kileen kids are behind the wheel whether we like it or not, and they do not always make the best decisions.

Educating our teens for on proper driving practices is one of the most important things we can do in protecting their future. Statistics show that sixteen year olds have higher crash rates than drivers of any other age, that teenage drivers and passengers are among those least likely to wear their seatbelts and most likely to speed. In 2010, 54% of passenger vehicle occupants ages 16-20 who perished in accidents were not buckled up. 37% of male drivers ages 15-20 who were involved in fatal crashes were speeding at the time! Show your children these statistics!

Invest in drivers' education for your children. Even if you can teach them yourself, it behooves them to learn thoroughly the ins and outs of traffic laws and the potential consequences of disregarding these through an established curriculum. Impress upon your teenage children the seriousness of buckling up, of following the speed limit, of remaining sober and aware of their surroundings while on the road, both for their safety and for the safety of those around them. At every opportunity, remind your children what is at stake: not only their money and their driving privileges, but their precious lives.

After we are certain our children are ready for the road, there is one final measure we must take to ensure their protection: insurance. Please do not drive uninsured and do not allow your children to do so. Texas requires minimum liability insurance coverage of $30,000 for each injured person, up to a total of $60,000 per accident and $25,000 for property damage per accident. There are providers everywhere for this 30/60/25 coverage, but the best choice is often the one closest to home. Even if you and your family are not eligible for military insurance, there are many fantastic local options like Allstar Insurance available to Killeen residents.

Killeen parents, let's join together in raising a generation of responsible drivers. Together, we can do it.

How Is Your Auto Insurance Rate Calculated?

Correctly predicting risks is essential for any insurance agency. If an insured suffers damages, in our case, because of a car accident, the company will have to cover the repair costs and the passengers' medical bills. An agency will try to reduce the cases where it has to pay up a benefit, or at least cover future possible expenses by increasing the premiums.

When determining you auto insurance policy's rates, a company will take into account a wide range of issues.

1. What are you driving? Since auto insurance concerns automobiles, the type and quality of your car matter a lot in determining the cost of your policy. A fast-sport car will cost a lot more to insure than a slow, but sturdy family car. Old vehicles will also get cheaper premiums, as long as they are in prefect working condition. New cars cost more to insure because they are expensive to repair or replace. So, if you are looking forward to buying a car, think of your auto insurance rates too when you make your pick!

2. How are you driving? Driving experience accounts for a high percentage of your auto insurance rates. Someone who has driven for a long time will get cheaper rates because it is unlikely for him or her to make a mistake and damage the car. On the other hand, a history of reckless driving and DUI will raise the costs.

3. Your finances. An insurance company will look into your finances so that they can make sure you will be able to pay the premiums. Having a good credit rating puts the agency at ease because they know you'll have the means to pay for your insurance.

4. Your lifestyle. Someone who drives safely will always get the better end of the deal. Your lifestyle can tell a company a lot about the way you drive. For example, agencies will consider any under 25 single male a liability. On the other hand, a married person will drive safely because they do not want to risk endangering their family, so they will get cheaper rates. Your education level and grades can also help reduce the cost of your auto insurance. Another reward for being a good student is getting cheaper auto insurance!

As you can see, there are many things that contribute to your insurance rates. It is important to know what issues count as you can use the information in your advantage and lower your policy's costs!