Car Insurance Premiums at Goodtogoinsurance

car insurance premium
When you buy a new vehicle policy, the actual amount you pay out for the coverage you have purchased is called the premium. Just as the levels of coverage you get will vary greatly, so will your car insurance premiums. In simple terms, the amount you pay for your insurance is the premium cost. This expense can be paid in several ways by most insurers: annually, semi-yearly or monthly. People that have the money to pay it in full usually receive a small discount of 3% or so. The most popular payment term is monthly.

Many companies have simple payment plans that can be set-up and paid automatically each month. It also makes sense in many ways to break up these costs into smaller increments, because if you ever decide to cancel your coverage, there won’t be a delay in getting back your refunded amount. So if you purchased an auto insurance policy for the annual sum of $1,200, you could budget and pay $100 monthly for example. For many people on a strict budget, this payment flexibility is the only way they can afford to get covered.

Automobile Insurance Premium Factors.
There is no getting around buying insurance if you plan on operating a motor vehicle. Each state has set forth strict laws that require drivers to carry certain levels of protection. Some states like Florida have lower levels of liability mandated coverage while other states like California have higher minimum limits. Check with your state insurance department for the specific requirements in the area you reside.

Insurers use sophisticated algorithmic formulas to determine the cost you pay for insuring your vehicle.

Each piece of information that you enter when you apply for a quote is used as a rate factor. Everything from the zip code you live in, to whether you garage your car at night or park it on the street, will play a role in calculating your rates. Insurers plug all this info into their algorithms and spit out a price quote. The most important factors that will either increase or decrease the costs of your insurance are:

  1. 1. The Car you Drive.

The type of car you drive has a big role in determining the price you pay for coverage. More expensive vehicles like a new Range Rover will logically cost a lot more to get covered than a broken down old sedan that is worth three grand. This is just simple common sense. If you wreck and need to replace a car that is worth $60,000 as opposed to the old sedan that can be replaced for $3,000, insurers will end up spending 20X times more for a total replacement accident. This added financial risk is passed on to the customer in higher premiums.

If you do get an expensive car, make sure to get a higher deductible and get all the discounts you can, so you pay less. On the flip side, if you have an old car that you don’t drive much, consider getting liability only coverage. It doesn’t make sense to get more expensive comprehensive coverage for old cars because they are just worth so little. Why pay an extra $600 a year for extended protection, when in 4 or 5 years you have paid out in premiums the actual Kelley Blue book value of the vehicle. Be smart when you buy insurance and always get the coverage you need and nothing else.

  1. Your Sex and Age.

Drivers from the age of 16 to 25 will pay upwards of double what older drivers pay. Age is a huge factor in rates. The stats do not lie, and teens get into more accidents than any other age group. The trend is on the upswing with so-called “distracted driving,” such as risky behavior like texting and even using Skype while driving.

The good news is most young people get a break once they turn 25. If you are a teenager or younger adult driver looking for a price break, take a defensive driving course and get good grades. These two things can help you save 10% or more.

  1. Your Driving Profile.

Safe drivers with a good driving record pay a lot less for car insurance premiums. Conversely, risky drivers who have been convicted of driving recklessly or intoxicated can have their rates sky-rocket or coverage canceled. Keep a good driving profile, stay accident-free and you will see your rates go down.

  1. Your Credit Score.

Insurers are putting more weight lately on a person’s credit rating. They consider risky financial moves to correlate to risky driving. For safe and responsible drivers who have had hard financial times, this might seem totally unfair. The reality is, to get the cheapest insurance rates available; you need to maintain a credit score of at least a 650. If you have a lower rating, take steps to get it improved so that you can get cheaper rates.

  1. The Coverage you Buy.

The more auto coverage you get, in general, the more you will pay. Adding collision or comprehensive to your policy can cause your policy costs to go up quite a bit. However, getting the coverage you need that will protect you in the event you get into a serious accident should be the foremost objective of the policy. If you have amassed significant assets, then you will need to get a high limit policy that covers you in the event you are sued. If however you are a young kid with no real assets to protect, you can often get by buying the cheapest liability package that is on the market.

Check car insurance premiums in your area today with a quick quote. Let good to go Insurance help you find the best policy at the lowest national rates available.

One comment

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by Defensive Driving Can Save Your Life | 877-850-1267 call today! on November 23, 2015 at 7:40 pm. #