Auto Insurance is confusing and trying to determine fact from fiction makes purchasing auto insurance that much more difficult. Understand the complexities of auto insurance with this must know guide. eTotal Insurance is dedicating to helping you understand auto insurance while finding the best auto insurance rates available to you.
An individual’s car insurance rate can be affected by many factors, depending on the insurance company different criteria is used when evaluating an insurance application. While each company is different, many will look at motor vehicle records to see how many accidents, tickets, and other incidents are on an individual’s driving record. Many companies will also use an insurance history report to review past claims. The final piece of information most insurance companies will take into consideration, is credit history. Viewing credit history is to determine how the applicant is classified; this is however, not a full credit report.
The amount of coverage you choose to receive on your auto insurance plan will affect the amount that you pay to your monthly premium. The majority of your monthly premium will go to the legally required portion of your policy. Often times other coverage can be reduced or eliminated in order to save money. Insurance prices can also be based on the deductible you choose to pay. The higher the deductible, the less money an auto insurance carrier has to pay. In cases like this, the insurance company is likely to lower the monthly premium because they will not have to pay as much if a claim is filed. In order to learn about reducing costs by eliminating unnecessary coverage, or requesting a higher deductible, contact your insurance agent today.
Each insurance carrier offers different auto insurance rates and plans, and prices vary widely from company to company. The auto insurance business is competitive and companies are continuously competing for your business. The best way to ensure that you are getting the best priced plan available to you is to shop around by comparing quotes for comparable plans available in your area. To do this online visit a price comparison site such as eTotal Insurance. If you find that you are getting the best auto insurance rate with your current company there is no need to switch plans. Prices for the same policy from the same company are set by law, approved by the state and cannot be changed by an agent. Switching your auto insurance policy is most effective when switching to a new company that can offer comparable coverage at a cheaper price.
Myths associated with auto insurance price:
- Vehicle color will determine the price of auto insurance: The color of your car will absolutely not affect the price of your auto insurance. What does matter is the type of car you are driving; auto insurance premiums are based on the make, model, body type, engine size, etc. Auto insurance rates can also be based on the actual sticker price of the car, the costs to repair it, and safety record.
- It costs more to insure your car when you are older: This is quite the opposite. In fact, when drivers reach 55 years of age or older, more discount become available. Some insurance companies will provide as much as a 20% percent discount for those who qualify. In addition there are benefits for being retired, as well as additional driving courses
- Soldiers pay more for auto insurance: As a thank you for serving our country past and present, soldiers qualify for a discount on auto insurance. There are many auto insurance carriers that will also extend that discount to family members of soldiers.
