Factors that affect your insurance rate
Every insurance provider will offer you a unique rate. That’s because your insurance rate isn’t based on just one aspect of you—it’s based on several factors, including your:
- Driving record
- Average annual mileage
- Vehicle type
- Marital status
- Credit score
- Zip code
- Coverage amount
These factors help car insurance providers assess your risk as a driver. While some of these elements are out of your control, others can be optimized to lower your car insurance rate. For example, you can find a lower premium simply by shopping around for a new car insurance provider.
Why is this? Well, every auto insurer weighs these risk factors differently when they calculate your car insurance premium. By comparing personalized quotes from different insurance providers, you’ll discover one that can offer you a lower rate.
Different levels of insurance coverage
Most states require all drivers to purchase a certain amount of car insurance coverage. However, the ideal amount of coverage is based on your personal preference. Some drivers only want the bare minimum amount of coverage that’s required by law. Other drivers want the fullest protection they can get.
Here are the most common types of car insurance coverage:
- Liability insurance – Liability insurance is legally required in most states. If you cause a car accident, this insurance covers the costs of the resulting damages, including other people’s injuries and property damage. It will pay for their medical bills, lost wages, property damage reimbursements, and funeral costs. It will also cover the costs of your legal representation, if you need any.
- Personal Injury Protection (PIP) Insurance – While liability insurance pays for other people’s medical bills and lost wages, PIP insurance pays for your own. PIP insurance is often called “no-fault” insurance because it applies no matter who caused the car accident. Your PIP coverage also extends to your car’s passengers. Since medical expenses can add up quickly, a PIP policy can give you valuable peace of mind. You’ll enjoy the comfort of knowing you're personally protected on the road at all times.
- Uninsured/Underinsured Motorist Insurance (UMI) – Even though car insurance is required by law, some people still choose to drive without it. If you get into an accident with one of these drivers, they won’t be able to compensate you for the damages. Likewise, drivers who have very limited coverage will struggle to compensate you properly. In these situations, a UMI policy can protect you. It will cover the costs of the damages they cause.
- Collision Insurance – Collision coverage pays for your car repairs if your car gets damaged in an accident. If your car is totaled, the collision coverage will pay you the amount of money that your car was worth. Collision coverage is usually unnecessary if you have an older car that’s diminishing in value. However, if you own an expensive car, it may be a beneficial policy. Also, if you have a lienholder, this auto policy is usually required.
- Comprehensive Insurance – Collisions aren’t the only thing that can damage your car. Harsh weather, car theft, vandalism, animals, and falling objects can all harm your vehicle. Comprehensive insurance covers these damages so you can pay for any necessary repairs. As with collision insurance, this car insurance policy is required if you have a lienholder.
Beyond the legal car insurance requirements, the amount of car insurance coverage you purchase is up to you. No matter what your preference is, you can buy auto insurance online for the best price when you use Online Auto Insurance.
Auto insurance laws and regulations
Car insurance requirements vary state-by-state. To be in accordance with your state’s laws, you need to purchase the required amount of coverage. Most states require liability policies at the very least.
Online Auto Insurance will teach you about all of your state’s laws and regulations, including:
- The legal requirements for car insurance in your state
- How much the minimum car insurance coverage costs in your state
- How to get the best rate on your state-required coverage
Once you’ve learned about your state’s laws, you can legally drive the roads with confidence and save money along the way.
Why compare auto insurance online? Is it safe?
Car insurance rates vary across providers. If you want to get the lowest rate, the best thing you can do is compare auto insurance quotes online. By comparing personalized quotes from the leading providers in your area, you’ll discover which ones can offer you the cheapest premiums. In turn, you’ll be able to save money without sacrificing coverage.
Best of all, comparing rates online is safe, fast, and free. Online Auto Insurance allows you to compare car insurance within a few clicks so you can:
- Find the perfect amount of coverage for your needs
- Discover what discounts you qualify for
- Choose the best car insurance provider
- Enjoy the cheapest rate
By comparing Online Auto Insurance quotes, you can stop settling for inflated premiums and start saving today.