Car Insurance Prices
It is no secret that there is a great deal of competition among insurance providers when it comes to car insurance prices. They all vie for our business and will advertise that you can save hundreds of dollars over the competition if you switch to their company. Actually, the main concern of any driver should be the amount of coverage that he or she has, but if price is an issue there are a number of ways to get a discount on car insurance.
Minimum State Requirements vs. Optional Coverages
One of the most significant factors that affect car insurance prices is the amount of coverage you have on your vehicle. Most states require liability and bodily injury but there are a number of other coverages which should be considered. By carrying only the minimum state requirements you can significantly lower the amount of your premiums but that might not always be a wise decision. In fact, if your car is financed you will most often be required to also carry collision and comprehensive coverage. Other optional coverages that would affect car insurance prices would be Emergency Roadside Assistance and Mechanical Breakdown Insurance to name just a couple.
Safe Driver Discounts
Safe driver discounts are usually awarded to drivers who have a clean driving record in the state in which their license is issued. Usually this means an absence of tickets or mobile violations within a certain time period, usually three years but this varies from company to company. Also, most insurance companies provide a discount for drivers who have not had a claim filed against their policy for a specified length of time, again usually three years but some companies stipulate five years. This doesn’t only refer to at fault claims but not at fault accidents as well, including comprehensive claims.
Bundle Insurance Discounts
Another area that can provide a discount in car insurance prices is something called a bundle discount. There are a great number of insurance companies that underwrite car insurance as well as homeowners insurance, motorcycle insurance, renter’s insurance and other insurance products as well. These companies provide discounts for those insured drivers who have two or more insurance products with their company. Usually this discount is around 15% on each policy, but again, this varies from company to company.
Driver’s Education and Defensive Driving Courses
Whether the insured is a young driver just starting out or a more experienced driver who has taken a defensive driving course, many insurance companies will offer a discount upon successful completion of the course. There is a good deal of logic behind this as a well informed driver is a safer driver which statistically means they are better able to prevent or avoid accidents on the road. Young drivers are often required to have a driver’s ed course in their states as a requirement for getting a driver’s license, but completion of driver’s ed can also yield a savings in car insurance prices. Of course a young driver between the ages of 16 and 18 will have the most expensive insurance due to their lack of experience but completing drivers ed does provide a discount for mom and dad.
Other factors that affect car insurance policies would be such things as multiple vehicle polices such as having an RV policy, a motorcycle policy and a car insurance policy. As a rule of thumb, the three factors that affect car insurance prices the most are the insurance companies themselves, the amount of coverage and the experience/age of the insured drivers. If price is an issue then take the time to do some comparison shopping online to find car insurance prices as low as possible but with the necessary coverages.