General Car Insurance – Goodtogoinsurance

general car insuranceGetting a good rate for your car insurance depends on a number of factors. Some of the main components of car insurance pricing may seem unfair, such as ones gender, age and even marital status but there are things you have control over which will help you get excellent coverage and rates. Lets take a look at the most common general car insurance pricing elements that will help you understand how companies determine rates and also help you find ways to cut your premiums by as much as half.

1. Learn about the various types of car insurance coverage

One of the things you have control over when purchasing auto insurance is the type and amount of coverage you select.

Car insurance policies are broken down into several general insurance components.

* Liability coverage for bodily injury: If you are in an accident that causes injuries to others or even kills a person, bodily injury

will protect you from claims held against you, up to the amount of coverage you secured.

* Medical: This coverage pays for injuries sustained to you and others in your vehicle. In some states such as Michigan, PIP coverage will replace medical.

* Collision: This important type of coverage will pay for damage sustained to your vehicle, based on the current market value at the time of the incident. Typically, if you lease a vehicle or even get a car loan on a new or newer vehicle, you will be required to buy general collision coverage. This is because the lender or leasing firm wants to protect the asset they are financing.

* Uninsured driver protection: This is an optional coverage that you should strongly think about getting. If you are ever hit by a person that has no insurance whatsoever you could end up being forced to repair or replace your car if you do not have this coverage. With so many uninsured drivers on the road today, if you can afford a few extra dollars a month, it’s worth it.

* Property damage: This coverage will pay for claims resulting from your vehicle doing damage to another persons property and is mandatory in all but three states nationwide.

* Comprehensive: This is a type of general auto insurance coverage protects you from just about anything that could happen to your car. Incidents such as a deer smashing your windshield, a fire, or vandals that spray paint your vehicle will be covered. Comprehensive car insurance is strongly recommended if you have an expensive car that is costly to repair such as a new Lexus. Always remember that the higher your comprehensive deducible is, the lower your premium will be. Get a general insurance quote today and see how easy it is to save with special online discounts.

2. The car you drive affects insurance rates

Almost everyone dreams of getting a brand new exotic car such as a Ferrari, Mercedes or Corvette. Unfortunately, unless you have lots of spare money, the car insurance rates may shock you or even break you financially. This is because one of the general car insurance pricing components all insurers use is the car make and model. The more expensive the automobile is, then more than likely the higher the auto insurance rate will be. This makes sense because if you total a car that is worth $65,000, then your insurer will have to cough up that amount to replace the vehicle. So the value of your car is a big element insurers use to calculate your rates. Also, what are often deemed “high performance vehicles” such as a Porsche or Corvette have very steep insurance costs, because people often drive these cars aggressively and the accident repairs are outrageous.

Another factor insurers use to calculate car insurance rates is vehicle theft data. If you have a car that is on the top 10 list of cars most frequently stolen, then sadly you will be paying a higher premium. If you are on a tight budget, then stay away from cars that are often stolen and new cars that carry higher premiums. Always remember that insurers base their rates on their experience with a certain vehicle or car type. Some insurers for example have had larger payouts from sports cars than others and thus price those vehicles higher. So this is all the more reason you should shop around for the best insurance rates.

One of the hottest car insurance categories these days is SUVs. These cars are large, powerful and generally hold up better in serious accidents that small cars. Not only do many SUVs save lives but many models such as the Volvo XC90 are fairly cheap to insure. This is because the Volvo has so many safety features that really cut down on serious injuries and deaths. The means SUVs result in fewer serious injury claims and less payouts by insurance companies.

Another category that is the predecessor to the SUV is mini-vans. One popular van, the Honda Odyssey, has had a near zero death rate for drivers and passengers. So my general insurance tip is to go big, get a lower insurance rate and drive more confident knowing that you are in a safer vehicle.

3. The person you are will affect your rates

No matter how good or safe of a driver you are, you will be penalized or rewarded just by being you. For example, if you are a teenager that drivers like an old lady, guess what, you will still be paying a hefty insurance premium. For the careful young driver it might sound really unfair, but the facts are teen drivers get in way more accidents that older drivers over 25 and thus rates will reflect those stats. Also, your gender will either save you money on car insurance or cost you. Males, although they think they’re much better drivers than females, get in more accidents than the opposite sex. If you are a female, expect a 10% discount over your male counterpart. If you are a male driver that is married, then you can expect to get lower rates because insurers will view you as more matured and a more careful driver because of your family obligations, such as the dependents that count on you.

4. The area you live in affects rates

Whenever you get a general car insurance quote, one of the first questions will be the zip code you live in. Car insurers base a good portion of their rates on where you live. If you reside in an rural area with low automobile accident rates and low vehicle thefts, you can get really cheap car insurance. However, if you live in an urban area such as Chicago, where your zip area has a propensity for auto accidents and high legal fees, then your car insurance rates will be higher.

If you are thinking of moving to a new area, use a free calculator service like CarInsuranceEstimate.org and get a quick snapshot of your expected insurance rates in several zip codes. If you are looking for a new house in several zip areas, this can really help you prescreen which areas are the cheapest and use that as part of your home buying criteria.

5. General Car Insurance Quotes

Now that you have a few ideas on how to save money on automobile insurance, it’s time to get real quotes. The internet is by far the best place to get general car insurance quotes. You can get quoted in about 5 minutes and select the best rate from over 100 insurers, all from the comfort of home. Get started now and get the coverage you need and the best available rates.

by Toni Kohonen