The car insurance cost is not an easy question. The quote you may receive can be too high or rather low, but the final sum depends on many factors. Let’s analyze them all in turn.
First of all, the insurance company regards every client from the point of his or her gender, age, and the marital status. That’s because each company has the statistical data from their previous clients, on the basis of which they can draw some conclusions. For instance, if the person is under 25 year old, male, and isn’t married yet, he is described as a risky person. According to statistics, people of this age and this social status become the most frequently seen initiators of car accidents. Location will also be taken into consideration since state laws have a great impact on rates. For instance, Michigan is accepted as the most expensive state because of its medical care and protection. Montana takes the second place, while Washington is at the third place. It’s explained by the fact that highly populated areas have more risks for accidents. In order to save money, you should get married since the location is the most challenging category to save on it.
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The car you drive will be the second determining factor for auto insurance cost by state. When you buy your car, you most likely don’t think how it may affect the insurance rate, but you have actually to do it. Therefore, remember a simple rule – the faster your car drives, the more chances of accidents you have. Insurance companies always adhere to this rule. So, if you drive a sedan or minivan, you won’t have to pay more than an owner of a sport car. Anti-theft devices can also be useful for you.
Your driving history is the third significant factor for insurers. For many policyholders this aspect is the most logical since it shows your way of driving and your experience. So, the fewer violations you have, the better it’s for you since you will be offered more affordable rates. Some companies prefer to analyze such violations in detail. For instance, if you have missed the red light and have continued moving, such a violation won’t affect the rate significantly. But if you are cited for reckless driving, be ready to have almost a double rate.
Your credit score is the fourth important factor, which will be taken into account. The scheme is the following: the higher your credit story is, the less chance you have to get a claim. Unfortunately, you can’t change the past, but still, you can improve the future. Accordingly, raise your score by paying all bills on time and reducing the large balances – these should be your first and the most important steps.
The next factor may seem a bit surprising for you because your driving habits are also a kind of determining factor. They define and confirm how you use your car, how much time per day you drive it, whether your car is dirty or not at the end of a week. All these aspects describe you a reliable or aggressive driver. The most impressive factor, which all companies consider while insuring a person and his car, is how often you drive your car as they think that the rarer you drive somewhere, the less accidents you have. What can you do about it? Move closer to your work in order to spend less time on the road. Take public transport some days to reduce the risks of getting into trouble.
The cost factor number 6 is the coverage and its amount you would like to choose. To begin with, the first sum is the amount which the company will pay in case of filing a claim. The possible limits always vary from $50,000 to $100,000. The second sum to take into account is deductible – the sum which you have to pay yourself for filing a claim. Moreover, you will have to determine the minimum limit in accordance with the place you live in (e.g. being a Tennessee resident, you have to estimate your limits as $25,000 for a person and $50,000 – for an accident). This limit is important, but still, you are not required to choose this very sum of money. You can vary this sum as to the biggest side, so the smallest one.
And the last significant moment is the type of coverage: body or damage liability. Think of all moments you consider risky and choose the plan according to it.
The car insurance average cost was determined as $815 (in year 2012). These data were published by the National Association of Insurance Commissioners of the U.S. Taking into account the approximate amount in certain states, the picture is the following: Alabama − $650, Indiana − $650, Iowa − $560, New Jersey − $1,100, Ohio − $630, Texas −$850, Virginia − $690, etc.
So, get to know with the rates for your state before insuring the car. Check out our quotes on homeowners insurance cost also using zip code. Get cheaper deals here by online comparison tool. We provide low cost auto insurance coverage that can be obtained online by quote request.