Car insurance is a contract between an insured and an insurer to pay for losses that may be incurred as a result of an accident. The policy is usually a single agreement that covers you, your passengers and the vehicles that you drive. It’s important to review your coverage regularly and discuss any changes with an agent.
Most states require liability insurance, which pays for the cost of repairing or replacing other people’s property and injuries in an accident. It also protects you from being sued by an injured person if your fault in the accident.
Liability insurance typically has minimum limits that you can choose to increase. For example, you might want to increase your bodily injury liability to $25,000 per person and $50,000 per accident, or you might purchase higher property damage liability limits to cover more than the minimums required by law.
The cost of car insurance depends on a number of factors, including the type of vehicle you drive and where you live. Location, population density and crime rates are all considered by insurers when calculating your quote.
Personal factors such as your age, gender and marital status can also affect your rate. For instance, teen drivers often have higher car insurance quotes because they’re more likely to get into accidents than older drivers.
Driving record: Having multiple speeding tickets or a DUI on your record will increase your premiums. This is a risk factor that insurers consider carefully when calculating your quote.
Other rating factors include your credit history and previous auto insurance claims. These details are often gathered during the quote process, but they can also be requested after you have purchased the policy.
Getting quotes frequently is a good idea, as life can change quickly and you might need to add or remove coverages or adjust your coverage levels.
When you compare car insurance quotes, be sure to provide complete and accurate information about your situation and circumstances. This information will help you determine which policy offers the best value for your needs.
In addition to the type of car you drive, your age, driving history and location can impact your rate. For example, a teenage driver in a high-crime area will have a higher rate than a teen in a low-crime area.
Gender: Women are less likely to engage in risky driving behaviors than men, which can lead to lower rates for full-coverage insurance. However, in some states, including California, Hawaii, Massachusetts, Michigan and Pennsylvania, women’s insurance rates can be based on other factors that may make their rate higher than that of a male.
Vehicle Make and Model: You should always have a valid VIN number, as it’s necessary for an insurer to calculate your quote. This is especially important if you’re leasing or financing your car.
Comprehensive and Collision: Your car might be stolen or destroyed by fire, hail or other natural disasters. These coverages will pay to repair or replace your vehicle, regardless of who is at fault in the accident.