You can get inexpensive auto insurance when you know the facts.[/caption] Buying a car can be an exciting undertaking, but it’s also a major purchase that will need to be insured. Many factors go into the cost of your automobile insurance so to help shed a little light on what otherwise might be a confusing subject, here are some facts you need to know before you buy your next car.
Assessing Your Risk and Rating
Insurance companies will take a look at your specific risk as an insured driver, as well as assign ratings to your coverage based on key factors that impact your coverage. People who have these in common are known as a group. Claims within these groups are measured for frequency for different types of insured events and help determine whether you will have inexpensive auto insurance or higher premiums. Here are some things that will affect your rating:
- Vehicle make and model. The type of car you are insuring influences your premiums. For example, more expensive claims are made on sports and luxury cars each year than are made on other models, such as minivans.
- Vehicle usage. You are put in a higher risk category if you put more miles on your car annually than the average driver.
- Where you live. If you live in a rural area, your rating will be better than if you lived in an urban area since more claims are filed in urban areas than in rural areas.
- Driving record. You are ranked at a higher risk if you’ve had accidents and traffic violations.
- Age and gender. Claims are filed more often by specific age groups than others, and males have more accidents than females.
- Marital status. Singles have a higher claim rate than those who are married.
- Coverage history. If you failed to make payments on your previous insurance coverage, this will adversely affect your rates.
Understanding Comprehensive and Collision Coverage
Your basic automobile insurance coverage is liability only; however, there are additional types of optional coverage you can take advantage of adding, namely comprehensive and collision.
Collision Coverage
If your car runs into something, such as a tree or another vehicle, this will help pay for the damage to your vehicle.
Comprehensive Coverage
If your windshield gets smashed or your car is the victim of vandalism, theft, extreme weather conditions, fire, and a multitude of other problems, this coverage will help cover these damages.
Insurance Discounts
Check with your car insurance agent in Dallas, TX, to see if you qualify for insurance discounts before making your car purchase. Although discounts are different for each area, here are some that may be offered in your area:
- New safety and anti-theft features. If your car contains the latest in safety or anti-theft technology, this could lower your premium.
- Additional car coverage. If you already have insurance on one vehicle and are adding another, you could receive a discount for multi-car coverage.
- Driver education. Taking a driver’s ed or defensive driving course.
- Other discounts: ask about a good driver discount, low vehicle mileage and good student discount.
Before you make your new car purchase, contact us with any questions about affordable car insurance in Dallas, TX. We will help you get all the discounts and coverage you need for your vehicle.