Car insurance is an integral part of the insurance budget. There are many variables that cause rates to rise or fall. Some of these variables cannot be controlled by the insured, but there are some things the insurance buyer can do to keep their policy reasonable without losing much in protection.
What are your assets? – Do you have a house? Do you have multiple vehicles? Do you have a business? Are you renting an apartment? Your strength in assets is a factor in selecting your limits of liability. If you accidentally injure or kill someone in a car accident and you have low liability limits on your car policy, then your assets are the next eligible to pay for the damage.
The age of the vehicles – Newer vehicles usually require physical damage coverage from the lender. Older, high-mileage vehicles sometimes don’t warrant physical damage. The rates for physical damage can be adjusted up or down based on the deductible you choose.
The era of the drivers – Adult fares, senior fares and young driver fares make a huge difference in the total fare. Young drivers of vehicles with physical damage coverage can be very expensive.
What are the discounts? – There are a number of discounts on car policies. The multi-policy discount is given by insurance companies for buying both car and home insurance. Retirement discounts are available for seniors. Young drivers receive a discount on driver training. Some companies give good student discounts for young student drivers who keep an average of 3.0 points.
Complete tort or limited tort – Many states have a discount for selecting a limited tort. A tort is your right to sue for pain and damages in addition to the basic liability regime. This varies from state to state.
This is the general picture insurance companies use to determine your individual rate. You have a choice when it comes to liability, physical damage and tort. Ask lots of questions about these three areas when purchasing auto insurance.