Finding the Right Car Insurance for You

Finding the Right Car Insurance for You

September 22, 2020Car Insurance

Part of being a responsible driver is having the insurance coverage you need in case of an accident. In fact, having adequate car insurance coverage will save you money, time, and stress in the future, so it's important to make sure you have the insurance plan that is right for you. However, insurance companies each have unique approaches to determining rates, which can make comparing quotes a little more confusing. Fortunately, finding the right car insurance for you is easy when you know what factors to look for.

Finding the Right Car Insurance for You

1. Quote by Age

Many insurance companies formulate their quotes based on the age of the driver. These standard quote measurements are done by age ranges, meaning a 25-year-old and a 40-year-old driver will each be looking at slightly different formulas to determine their quote rates. Generally speaking, younger drivers have more expensive rates, but the trade-off is that older drivers may have an unfavorable driving history that could negatively impact their premiums.

Why Age Matters to Insurance Companies

It might be a little unfair, but insurance companies are used to calculating their coverage based on statistical riskiness - and young people are a bit more likely to engage in risky driving behaviors that could result in more frequent accidents and more expensive claims. This is especially true for new and first-time drivers, who tend to have higher premiums, even when they are added onto their parent's plans.

2. Quote by State

Your state may also determine the rate of your insurance, even if you're using a nationwide company. Most insurance companies have different rates in state-to-state comparisons due to the conditions of the roads in the state, the cost of repairs in the state, and other factors that are set by individual state legislation.

Why You Might Want to Consider Multi-State Coverage

If you travel in your vehicle a lot or you happen to have a residence in two different states, then you might want to consider multi-state coverage. This is auto insurance that keeps you covered for any accidents or incidents in each state you drive the most in. Of course, you may only need to consider multi-state coverage if your insurance company doesn't offer it by rote - and there are many companies that do have multi-state coverage baked into their terms.

3. Quote by Credit Score

Your credit score will directly impact the rate of your coverage, which might matter if you need more coverage than other drivers. The right car insurance for you will be able to balance poor credit history with your driving needs. The use of a credit score when calculating your insurance premium is again based on risk - drivers with a poor credit history are categorized as "riskier" and their premiums are consequentially higher than drivers with better credit.

4. Quote by Driving History

While a basic quote might be able to factor your age, state, and credit score into the average premium you can expect to pay each month, one of the more important factors for your insurance costs will be your driving history. Your driving history is a huge determiner for the insurance you qualify for and the type of coverage you can receive. As you might imagine, poor driving history is another variable that will increase your premium.

What DUI History Does to Your Rate

There are some companies that will not cover drivers with DUIs on their driving records, which can be a problem when you're trying to find a new insurance company. However, many drivers are surprised to learn that, for many insurance companies, having a DUI on your record is not enough by itself to increase your premium. If a DUI is the only hit on your driving record, you can still find plenty of plans to choose from.

What Speeding Tickets Does to Your Rate

All auto insurance is calculated by risk, and one of the riskiest driving behaviors you can engage in is speeding. Studies show that speedy drivers are more likely to be in accidents, which means they're more likely to file claims. When a driver is more likely to file claims, their insurance premiums increase accordingly.

What At-Fault Accident Does to Your Rate

Accidents, especially accidents where you have been found at-fault, are one of the more problematic hits your driving record can take. At-fault accidents will cause your premium to increase dramatically, particularly if you have more than one in your history. This doesn't mean that finding an insurance company is impossible, but it does mean you should expect your premium to be higher than what the generic quote might be.

5. Quote by Coverage Plans

You can also generate quotes for comparison based on the type of coverage you think you'll need. Standard coverage for most insurance companies will include repair and replacement of the vehicle in case of an accident, but there are certainly other types of coverage that you might want to consider.

For example, if you happen to live in a state that frequently experiences weather-related disasters, you might want to sign up for comprehensive coverage, in addition to collision coverage. Comprehensive coverage will protect you in the case that your car is damaged through no fault of your own, such as in the case of weather damage or theft.

What Type of Coverage Do You Need?

Depending on your needs and your preferences, there are a few types of coverage you might want to have. Most insurance companies offer liability coverage, collision coverage, comprehensive coverage, personal injury protection, and uninsured/underinsured motorist protection. The type of coverage you need to purchase will depend on your driving history, the state you live in, and the type of coverage you want to have to save yourself money in case of an accident.

Finding the right car insurance for you means getting quotes based on your age, the state you live in, your credit score, and perhaps most importantly, your driving history. Each of these factors will determine your monthly premium and may even determine the other types of coverage you may need or want. Compare car insurance providers today for more insight on how to choose the right car insurance for you

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