Car Tips: Things You Should Know About Getting Auto Insurance

Car insurance demands a hefty price, but states made it a legal requirement for a reason. According to the National Highway Traffic Safety Administration, there were over 6 million accidents in 2015. More than 35 thousand of those resulted in fatalities, 2 million in injuries, and 4 million in property damage.

Although there's only about a 3% chance that an individual will be involved in some kind of misfortune on the road, the consequences may be financially overwhelming and devastating. Getting a policy can provide peace of mind, as it'll cover your expenses in case of an accident. But, before you look for an agent, here are some things you should know about vehicle coverage.

 

Factors That Affect Your Rates

Each insurance company has its own process and criteria for calculating premiums. Basic determining factors include the make and model of your vehicle and how you use the car; do you use it to go to your work or for business purposes like delivering packages? Other factors include your age, marital status, location, credit score, and driving record.

 

Difference between Comprehensive and Collision Policy

Surveys revealed that 68% percent of Americans consider the difference between collision and comprehensive plans to be the biggest area of confusion. This percentage of the population believes that the comprehensive part of their policy covers damage to a collision, which is incorrect.

 

A collision plan takes care of repairs when you hit a fixed object like a light post, guardrail, tree, or building. A comprehensive plan protects you from things outside of your control. These include situations such as flood, fire, hail, vandalism, falling trees or rocks, and hitting an animal (sorry, deer).

 

Insurance Follows the Car

In most cases, the policy follows the vehicle and not the driver. So, if you lend your car to someone else, you're loaning them your coverage as well. But that doesn't mean you can just casually let them borrow it. Experts suggest that unless it's an emergency—or your best bud's your post-party designated driver—you must think about the implications of letting anyone else drive your car.

 

Lapses Can Drive Up the Price

It's easy to forget to pay your premiums or cancel your coverage altogether. Whatever the reason, your rates will increase if you let your policy lapse. You can bet your wallet won’t be happy about that if you need a plan again down the road. Car insurance companies state that even a one-day lapse can lead to higher payments. So, if you don't plan on driving for a while, ask your insurer about other options that may be better for you.

 

Prices Vary by Company

Auto insurance in San Diego, CA, varies by insurer. No two companies have identical premiums for the same policy. It's often an unsaid rule to compare prices if you're purchasing anything. Plus, if you don't weigh your options, you might wind up overpaying for a plan that costs $100 less at other insurers. Look for trusted agents or comparison shop to find a cheap insurance plan that still provides sufficient protection.