Car Insurance Cost

Car Insurance: How Much Does it Cost?

Car insurance is now mandatory in most states in the country.  Years ago, having car insurance was optional.  Those who had car insurance were protected.  Those who did not could have been sued due to being in an accident and not having insurance.

What is Car Insurance?

Car insurance is exactly what its name says.  It is a type of insurance that will protect your car if it is in an accident.  Car insurance not only protects a person’s car, it also covers the passengers in the vehicles and any property that is damaged. 

There are a couple different types of car insurance.  The type that gives the most protection and also costs the most is full coverage.  This insurance covers the driver whether or not he is at fault.  Full coverage will cover a vehicle in case of an accident or in case of theft.  It will also cover the driver and it’s passengers.  It covers medical bills, lost wages, as well as pain and suffering.

Another type of car insurance is called collision.  This is the type minimum insurance required in states where it is mandatory.  This insurance does not give as much protection as full coverage does.  It is also cheaper than full coverage is.  Collision insurance covers only the other vehicle involved in the accident.  If you are in an accident and you are at fault, the collision insurance will cover only the other driver’s vehicle. You will be responsible for paying for your own damages. 

When a person takes out collision only, they can add another type of insurance that they can add to their collision.  This is called uninsured motorist.  Uninsured motorist is a coverage which will cover the policy holder’s vehicle and passengers if it is hit by a car which is not covered by insurance.  It will also cover a vehicle involved in a hit and run.  Having uninsured motorist is extra protection for someone with collision only.

How Do I Find Out How Much Car Insurance Costs?

Car insurance can cost a different amount of money for everyone.  Some people are required to pay very high insurance premiums, and some pay very low premiums.  How much car insurance costs depends greatly on several things.

1. The Driver’s Vehicle: The driver’s vehicle depends greatly on how much they will pay for insurance.  If a person drives an older family car, their quote will be lower than if they had a brand new foreign sports car.  The reason for this is that if a brand new foreign car gets into an accident, it will cost more the repair.  Because the vehicle is worth a lot of money, it will cost more to fix it.  Also, the fact that it is a sports car will make the insurance more expensive.  The way car insurance companies see it, if it is a sports car, the driver is more likely to drive fast and get into an accident.

If the driver had a used station wagon, it would not cost much to repair and the station wagon if it were in an accident.  Also, a station wagon does not have the power that a sports car has so most drivers typically do not speed around in station wagons.

2. The Vehicle’s Safety Features: The vehicle’s safety features has a lot to do with how much a person’s car insurance will cost.  The safer a car is, the smaller are the chances of a person getting into an accident. 

A car that has anti lock breaks, air bags, and auto seat belts will have lower insurance rates than a car that does not.  A vehicle with anti lock breaks has less of a chance of crashing.  A vehicle with air bags and automatic seat belts is safer for the people in the vehicle.  If a vehicle is safer, the chances of a person being injured in an accident are less. 

3.  The Driver’s Driving Record: A driver’s driving record is very important when it comes to deciding how much a car insurance policy will cost.  A driver with a spotless driving record with no speeding tickets, no traffic violations, and no accidents which were the drivers fault, they will have a low insurance premium.  This is because they have proven to the car insurance agency that they are safe drivers and the agency will not have to worry much about paying for an accident. 

A person who has speeding tickets, accidents that were the driver’s fault, and traffic violations will have to pay more money for their insurance.  This is because the insurance company does not feel that this is a safe driver and they believe that the driver could get into an accident which would make the insurance agency responsible for paying for the damages. 

4.  Certain Personal Information: There is certain personal information that can make a difference in a car insurance price.  A person’s age is one thing that can make a difference.  Teenagers and elderly persons have higher insurance rates than a person in their thirties, forties, and fifties.  This is because, statistically, teenagers and the elderly have more accidents.

Whether or not a person is married can make a slight difference in a person’s insurance quote.  Married people generally have lower rates than do unmarried people.
A person’s sex also has a little to do with an insurance rate.  Females generally have lower rates than males do.

5. What the Vehicle is Used For: What the vehicle is used for and how often it is driven and how far, all have a part in determining how much a person’s insurance will cost. 
When a person has a vehicle that is used typically to get to and from work, their rates will be lower than a person who uses their car for their job. 

If a person is a delivery driver and uses the vehicle for that purpose, their insurance will be more expensive. 
When getting an insurance quote, the insurance agent will ask about how many miles per year a vehicle is driven.  This is because the more a person drives their car, the higher are the chances that they will be involved in an accident.  This will make their rates higher.

There are many things that will affect how much a car insurance policy will cost. Safety is the biggest issue.  The safer a driver and their vehicle is, the lower the insurance rates.