How Much Does Car Insurance Cost?
Because it is illegal to drive a motor vehicle without insurance, the cost of insurance is something that will eventually affect everyone. This cost varies according to many different factors. One of these factors is your age. Generally, the longer you have been driving, the more experience you will have; therefore the insurance is cheaper as you get older. Another factor that will affect the cost is the type of car you drive. How old it is as well as how it is made will cause the price of insurance to rise and fall. Normally the older the car, the cheaper the insurance will be. The area in which you live can also affect the cost of your auto insurance. The busier the area, the more expensive insurance will be. The cost of your deductible, which is the amount you pay in case of an accident, can greatly affect the yearly cost of insurance. The higher the deductible, the cheaper your price will be. Finally, your driving record, such as number of accidents and tickets, can affect the cost of you car insurance. Safer drivers usually receive cheaper rates.
How much is it?
Before we can discuss the cost, we must understand the different types of coverage available to you. If you drive an older vehicle, your best option is simple liability insurance. This will legally cover you in case of an accident, but will usually not cover the cost to fix or replace the car. If you have a newer car, it is best to have comprehensive coverage, which legally covers you as a driver as well as covering the cost to repair or replace the car in case of an accident.
- Simple liability coverage for an older vehicle can cost anywhere from $400 to $900 per year, depending on the combination of factors listed above. Some companies bill you monthly, others bi-monthly, and some every six months.
- Comprehensive coverage for a newer car can cost between $1000-$4000 per year, again determined by the factors listed above.
What is going to be included?
- One of the main things included in the cost of insurance is the liability coverage in case you get in an accident. This means that you are not personally responsible for the damage or injury to the other car and driver.
- The other main thing covered in comprehensive coverage is the replacement or repair of your car. Depending on the value of your existing car, the insurance company will determine whether it is totaled or not. If it is totaled, they will give you as much money as the car was worth to purchase a new vehicle. If the car is not totaled, they will have it repaired and will pay all but the deductible.
- Some insurance companies will provide a car for you to drive while your car is being repaired.
What are the extra costs?
- There are many “fine print” things that are not covered by insurance. For instance, some insurance will cover the cost of you hitting a deer while others may not. Be sure to read all information to avoid having to pay more than you planned!
Tips to know:
- Research the appropriate coverage that you’re going to need with your car. Be sure to know the differences between comprehensive and collision coverage.
- Always call up at least three different car insurance companies because all of them are going to greatly vary in terms of quotes. Most car insurance companies are more than happy to give a no obligation quote.
- If you’re a student, have an anti-theft device installed, or if you already have coverage with the company, most will be more than happy to give a discount.
How can I save money?
- There are many discounts given by insurance companies, but most of them are not advertised. You must inquire about them specifically. These can include discounts according to your occupation (teacher, police officer, etc.) or veteran discounts.
- Multiple car discounts are usually available if you insure two or more cars through the same insurance provider. This discount can be even greater if you hold your homeowners insurance through the same company as well.
How to compare prices:
- Services such as insureME and esurance can help you get an idea of what price range you will fall into.
- Although they may not be able to give you an exact amount, most insurance companies can give you a free quote over the phone.
How much did you spend?