How to Buy Car Insurance – A Beginner’s Guide
The price of auto insurance is dependant on many different factors, including the type of car you have, how old you are, your previous driving experience, the state in which you live, the amount of coverage you have, and many more. For example, the best auto insurance in Illinois might not be the same amount as the best auto insurance in Indiana.
The Average Cost of Car Insurance
According to a study from ValuePenguin, the average price of auto insurance in 2019 is $941.65. The study also noted that the three most expensive states in terms of auto insurance include Louisiana, Michigan and Florida. The average price for auto insurance in these states range from $1,596 to $1,824 per year. On the other end of the spectrum, the three states that have the lowest auto insurance rates are Ohio, North Dakota, and North Carolina, with averages ranging between $428 to $520 annually.
How Age Plays a Role in Your Rate
It’s no secret that age plays a large factor in determining auto insurance rates. It is assumed that the more driving experience you have, the less likely you are to get into an accident, get a speeding ticket, or get cited for driving under the influence. The same Value Penguin report notes that teenage drivers pay roughly four times the amount of auto insurance than drivers who are in their 20s. This price gap widens as the age gap widens. Also keep in mind that insurers vary their costs by gender.
Other Factors that Impact Your Auto Insurance Rates
It is helpful to understand all of the factors that play a part in determining your auto insurance rates. Besides age, here are some factors that influence how much you pay for auto insurance.
- How much insurance you want to purchase: there are different amounts of coverage when it comes to auto insurance. Some drivers want to opt for a more comprehensive plan while others choose to stick to minimum coverage. If you want a higher amount of coverage, it will be more expensive.
- Your driving record: A clean driving record can help lower your auto insurance costs. If your driving record is composed of speeding tickets or other violations, you can expect to pay more.
- Your credit score: If you have a high credit score, you’ll get a better deal on the best auto insurance in Illinois. Research shows that lower credit scores may be connected to an accumulation of moving violations or a DUI.
How Do You Lower Your Car Insurance?
The good news? There are ways that you can lower your car insurance so that you don’t have to pay a lot to get the coverage you need. At Accurate Insurance, we recommend the following approaches:
- Pay off your vehicle in a timely manner: If you are still paying off your vehicle, do your best to pay it off as quickly as you can. Doing so can help you get rid of excess insurance coverage that you don’t need.
- Increase your deductible: If you have a clean driving record with no accidents, consider increasing your deductible to help save money on your monthly payments.
- Avoid claims: If you have made insurance claims in the past, your monthly auto insurance cost will be higher. If your records show that you do not have a history of making claims, many insurance companies view you as a lower-risk customer.
How Much Auto Insurance is Enough?
Navigating exactly how much auto insurance you need can be tricky, especially if you are a first-time buyer. Liability coverage is a good place to start, as it covers both property damage and bodily damage. Bodily injury liability covers medical expenses and/or lost wages for other drivers or pedestrians injured in the accident. Property damage liability helps repair or replace damaged vehicles or valuables in the accident.
However, most states require that you have more coverage than liability, such as personal injury protection (PIP) insurance that pays for lost wages or treatment to minor injuries for those involved in an accident. Another type of coverage is medical payments coverage; it is similar to PIP coverage in that it covers you or other passengers’ injuries in an accident no matter who was at fault. Finally, uninsured and underinsured motorist coverage is designed to help you if another drivers is at-fault for the accident and they don’t have enough liability insurance to cover damages or injuries.
Check Your Particular State Requirements
Keep in mind that every state has different requirements when it comes to auto insurance minimums. It is important that you do the necessary research to ensure you are driving with the proper amount of coverage. The last thing you want to happen is to get into an accident without being covered, having to pay for everything out of your own pocket.
SR-22 is a type of insurance that is designed to help protect drivers who are at a greater risk or those who do not have the right amount of coverage. It is a financial responsibility certification required in almost every state for those who fall into at least one of the following areas:
- DWI, DUI or any other serious moving violation
- Those with a suspended or revoked license
- Repeat traffic offenses or multiple tickets received in a short period of time
- Those who caused an accident while driving without insurance
Contact Accurate Insurance Today
Are you interested in learning more about how to get some of the best auto insurance coverage in Illinois? Instantly get a quote from our site simply by entering your zip code. Beyond auto insurance, we also offer motorcycle insurance, SR-22 insurance and SR50 insurance. Contact us today to get started!