Baca Juga
Do you want to save hundreds on car insurance in 2017? Don’t waste your time doing it the old fashion way. We can help you compare multiple cheap car insurance quotes within minutes. The information we provide will help you make the best choice when choosing the right car insurance for your needs.
Why we Need Car Insurance
Car insurance is necessary for a number of reasons.
The main reason is that most states require it. Even states that don’t require the purchase of car insurance require proof of financial responsibility.
The cost of repairs for even minor accidents is usually thousands of dollars. Many uninsured drivers cannot afford to repair damages to their vehicles.
The risk of bodily injury, or even death, when the other driver gets angry after being hit by an uninsured vehicle.
Why some cars cost more (or less) to insure than others
Insurance companies charge varying premiums for different car models. Here are some of the vehicle characteristics that affect the cost of insurance:
Retail price — Generally, the pricier the car, the more expensive it will be to insure. Assuming you buy comprehensive and collision coverage, the insurance company will be on the hook to pay out the car’s market value if the vehicle is stolen or wrecked beyond repair.
Cost of parts — High-end models such as sports cars often use parts made from carbon fiber and other specialized materials that are expensive to repair, which drives up the cost of damage claims.
Safety — Over time, cars that do a good job of protecting drivers and their passengers bring down insurance costs. Fewer injuries means fewer claims for medical payments and personal injury protection.
Typical driver — Vehicles that tend to attract safe drivers — think minivans — are generally cheaper to insure. Safer driving means fewer wrecks, which translates into fewer claims for injuries and property damage.
Types of auto insurance coverage
Getting the best auto insurance policy isn't just about the lowest price. It's also about finding the right coverage, so you'll be financially protected if you get into an accident.
Here are the categories of coverage available:
1. Liability insurance
This insurance is required by law throughout some country. It covers the costs associated with damages caused to another person or vehicle in an accident, including medical bills, rehabilitation, lost earnings, legal fees, and other expenses up to the limit of your policy. As a practical matter, you'll want enough insurance to cover a judgment against you in a major accident so that your personal assets won't be put at risk.
2. Emergency road service
ERS insurance provides you with roadside assistance in the event of a breakdown or mishap while you're out driving. It also covers the cost of getting your car back on the road. Those costs may include light mechanical labour, an oil or gas delivery, new batteries, a boost, tire changes, locksmith services, or even a tow. With help on the way, ERS takes the stress out of a breakdown.
3. Comprehensive insurance
This type of auto insurance covers damages resulting from incidents that aren't related to car accidents or collisons. Comprehensive coverage often includes hazards like extreme weather, vandalism, falling objects, fire, theft, and flooding.
4. Collision insurance
Collision insurance covers damage to your car in the event of a vehicle rollover or a collision with another vehicle or object. If your car is totalled, collision insurance will pay the cost of replacing it.
5. Uninsured motorist coverage
Covers costs related to your injury or death after an accident caused by another driver who's either uninsured or unidentified, as in the case of a hit-and-run driver. Keep in mind that this coverage only pays for damage to your vehicle if the uninsured driver is also identified.
6. Direct compensation property damage
Available only in New Brunswick, Nova Scotia, Ontario, and Quebec, DCPD covers your car for losses and damages after an accident that you weren't entirely responsible for. But the other driver has to be identified, insured, and found to be at least partially at fault.
7. All-perils insurance
Provides protection for you against all types of perils except those specifically excluded from your policy.
8. Accidents benefits coverage
Provides you with medical care and income replacement benefits if you're injured in a car accident.
9. No-fault insurance
Deal with your own insurer regardless of who's at fault in an accident. With no-fault insurance, you don't have to pursue the other driver's insurance provider to get compensation. Your insurer will pay for your benefits, so your medical bills get covered and you can get back on the road.
10. Specified perils
This type of auto insurance only covers the perils named in your policy, and it generally includes commonly occuring hazards such as fire, theft, hail, and windstorms. Specified perils is often purchased as a cheaper alternative to comprehensive insurance.
Tips to Get Cheap Car Insurance
No matter who your auto insurance company is, here are tips for saving on your policy:
1. Look for discount
even ask for them. There could be discounts you’re not taking advantage of. For instance, maybe you now work from home and are driving less than when you bought your policy. Mention it and you might get a low-mileage discount.
2. Rethink your insurance limits and deductibles.
Don’t strip away your coverage just for the sake of a lower price. But consider accepting a higher deductible on collision and comprehensive if it makes sense. Raising deductibles means you would owe more out of pocket if you had to file a comprehensive or collision claim. If you rarely drive or are financially comfortable with that risk, though, it’s a surefire way to get cheaper car insurance.
3. Cash in on major life changes.
Certain life events could translate to cheaper car insurance. For instance, many companies offer a lower rate for married couples or domestic partners. Or perhaps you moved to a new city with stellar public transportation. If you’re commuting by train instead of car, your risk for accidents will go down — and your rates just might, too.
Facts About Car Insurance
Regarding states where liability insurance is required, some states don’t let drivers register vehicles without showing proof of liability insurance, while other states only require proof of insurance upon request, usually at the scene of an accident.
To work out annual rates on car insurance, carriers process decades of traffic information into actuarial tables that give claim adjustors an overview of the probability of just about any traffic-related occurrence.
According to the National Association of Insurance Commissioners (NAIC), the ten most expensive states for buying auto insurance (as of 2012) were New Jersey, DC, New York, Florida, Louisiana, Delaware, Michigan, Rhode Island, Connecticut and Massachusetts, in that order. The ten states with the least expensive auto insurance rates were Idaho, South Dakota, Iowa, North Dakota, Maine, Wisconsin, North Carolina, Nebraska, Wyoming and Kansas, in that order.
Calculations were based on a hypothetical 26-year-old male with no accident history, insuring a new Toyota Camry, and assuming liability limits of 100/300/50, with a $500 deductible. That means $100,000 in coverage against personal injury to the driver, $300,000 in coverage against injury to other people, and $50,000 in coverage against property damage.
Other location-related factors with a significant impact on car insurance premiums include urban population, traffic density, and per capita income. State laws, auto repair costs, liability coverage requirements, theft rates, and other factors can also affect the cost of auto insurance.
According to recent reports from the NAIC, the average annual expenditure for auto insurance in the United States was $814.99 in 2012. South Dakota had the cheapest average annual cost at $556.51, while New Jersey was the costliest state for car insurance, with an average annual expenditure of $1,219.93.
In 2014, the U.S. cities with the nation’s highest average annual premiums were Detroit (MI), New Orleans (LA), Grand Rapids (MI), Newark (NJ), Baton Rouge (LA), Hialeah (FL), Jersey City (NJ), Louisville (KY), Miami (FL), and Philadelphia (PA).
Over the same time period, six of the nation’s ten least expensive cities for car insurance were located in North Carolina. The ten cheapest cities for car insurance premiums were Winston-Salem (NC), Greensboro (NC), Raleigh (NC), Durham (NC), Charlotte (NC), Boise (ID), Rochester (NY), Fayetteville (NC), Spokane (WA), and Montgomery (AL).
The average annual premium for car insurance indicates the amount consumers actually spend per vehicle, as opposed to the average cost of premium packages offered by the insurance companies. Different states have different minimum requirements for auto insurance.
Get Cheaper Car Insurance in 2017
4/
5
Oleh
PPIU
