An insurance policy is something you hope to never have to use, but you’re happy you have it when you do. It’s what protects you and your baby—or car—in the worst-case scenario.
Regardless of how important it is, no one learns about car insurance in high school, and maybe not even college either.
So, here’s a crash course on the most essential information you need to know about insuring your car.
Some Cars Are Cheaper to Insure Than Others
As you already know, not all cars are created equal. The same is the case for car insurance. As mentioned on https://www.mychoice.ca/insurance/car/cheapest/, some cars are much less expensive to insure than others. If you’re trying to figure out how much you can afford to pay on insurance, then keep in mind that yours might be cheaper depending on the car you drive.
Reliable cars with good crash ratings are the ones that will be easier and cheaper to insure.
Some cars are designed for speed, and of course, people who drive those types of cars tend to exceed the speed limit.
We get it—you’ve been dreaming of revving up and taking off since you were a kid.
But this type of thrill does come with a price. Fast cars will have much higher rates due to them being totaled almost three times as often as those who drive mom-mobiles.
It pays to look good—but you will be the one who is paying—literally.
If you drive a foreign car, then you will also need to budget for higher than normal insurance rates. If a car is foreign, then of course all of its parts are foreign as well.
This makes them more expensive to replace or repair. If you have a foreign sports car, then make sure you’re prepared for those sky-high premiums.
What Types of Car Insurance Are There?
Listed below are the types of car insurance policies you will have the option of signing onto.
You must think long and hard about what will suit you best, and then get insurance before taking her for a cruise.
Liability insurance is the bare minimum insurance required by law as it will only cover the cost of the other party’s injuries and damages incurred during the accident. Take special note that it will not cover any of your personal injuries or damages.
Many people will add collision insurance on top of their liability policy so that the damages to their own vehicles will be covered.
Collision insurance can cover damages or repairs needed after an accident, and it can also replace the vehicle if it’s totaled.
Uninsured or Underinsured Motorist
Uninsured insurance will protect you in the case of a hit-and-run or if the other driver doesn’t have insurance but It is often paired with an Underinsured policy, which will protect you if the other driver only has liability and it does not cover the damages.
This is the full-scope insurance that can help you if another car is involved in an accident. It also can also pay for damages relating to weather, animals, vandalism.
Medical Bills Coverage
Medical bills are some of the most costly aspects of accident aftermath.
Medical bill coverage will cover all the costs relating to injuries, hospital stays, and so on. This is coverage that will be there regardless of who is responsible.
Towing and Labor
This type of coverage needs to be paired with comprehensive car insurance, and it can reimburse you for the towing and labor costs associated with repairing your vehicle.
Of course, all car-babies are special in their own way, but this kind of coverage is for those who have rare, vintage vehicles with unique needs.
If you do not have any car insurance at all, then you are taking a risk every time you hit the road.
At the very least, consider liability insurance so that you’re less of a danger for other drivers.
What Factors Affect Insurance Rates?
There are tons of factors that affect the rates you’ll be quoted by companies. Here are a few you should definitely know about.
A person’s age will be the first thing that heavily impacts the rate you’ll pay. Teens are a greater liability, so of course, their plans cost more. Senior citizens will pay the least for insurance.
Driving history is often used to predict the future—those who get speeding tickets, DUI’s, or wreck their vehicles are statistically more likely to have an unfortunate encounter on the road than those who don’t.
Those who have more experience with driving and have been on the road for years are less likely to get into an accident. So, they’ll enjoy low rates.
Research shows that people with low credit scores are more likely to file an expensive claim. This causes insurance companies to hike their rates up for those clients, as they’re more of a risk.
This one tends to upsets people, as it comes off as gender bias. But the facts are in the statistics.
Male drivers take more risks, get more speeding tickets, and get into more accidents than women. So, women will pay hundreds of dollars less per year on car insurance.
Listed in this article are the main factors that will affect the cost of your insurance rates, but none of them should make you change your mind about getting it.
While it’s likely your car is expensive to insure, or that you don’t have a great credit score, or that you’re a young man, other drivers and yourself must be protected in the case of an accident.
So shop around for the best rates, and then get your beloved vehicle's shield for protection.