Considerations Before You Buy Car Insurance
With the number of cars on the road, the range of insurance options is varied. The process seems simple with a long list of companies found online. However, it’s important to shop around and review the selections for car insurance carefully. Saving money on car insurance is important to afford the other expenses of driving. There are considerations to make before you buy any type of coverage for your vehicle.
Saving on Insurance
There are several factors that affect the cost of car insurance, such as age, location, marital status and driving record. Some factors you cannot change, but you have considerable control over your driving record. Safe driving habits will lower the cost in addition to installing safety features on the vehicle. Being a student or occasional driver allows you to save on car insurance along with owning an older, used vehicle.
The Type of Vehicle Matters
Small cars are more likely to get into car accidents than large vehicles like SUVs and pickup trucks. Small car owners fill out the most injury claims, according to the Highway Loss Data Institute (HLDI). Also, small cars receive more damages that result in expensive collision costs.
Most sports cars, especially from older models, are not built with safety features in mind. Also, two-door and four-door sports vehicles, including luxury SUVs, are the main targets for thieves. In addition to having high-performance features, these SUVs have four-wheel drive systems that are expensive to repair.
Some Rates Are Based on Experience
Despite the national statistics, many companies base their rates for car insurance on their own experience. One company may have hundreds more collision claims for the same vehicle model than for another. They will have to charge more for owners of a particular make and model. The company also has to evaluate the types of drivers they work with and determine who is at greater risk for accidents.
Buying car insurance seems simple, but there are many factors to consider before making a decision. To determine their rates, some companies look at your accident history, while others look at their claim history. That’s why it’s necessary not to assume that every company is the same and to shop around.