Anyone who has ever shopped for car insurance knows it can be an overwhelming experience. There are so many choices to make and multiple factors to consider, including what specific coverage and add-ons you should get.
Simply put, it can all be very confusing for someone unfamiliar with the ins and outs of the insurance industry. The good news is that you can arm yourself with the knowledge to make the process less challenging.
Newer and More Expensive Cars Can Cost Less to Insure
One common misconception is that newer and more expensive vehicles always cost more to insure. However, several factors affect insurance rates, and the price of the car is just one of them. Insurance companies consider the vehicle’s value, safety record of the make and model, and likelihood of theft.
As a result, a newer and more expensive car may not necessarily be more costly to insure. So, if you pick up a new Chrysler, Jeep, RAM, or Dodge for sale, you might see your rates go down or stay close to the same.
Shop around and compare rates from different companies before making a purchase. Doing so can help ensure you’re getting the best possible deal on your auto insurance.
Coverage Follows the Car
When you purchase car insurance, the coverage follows the car rather than the driver. This is good to know if you ever let someone borrow your car. The insurance policy covers the vehicle as long as that person has your permission to drive.
However, keep in mind that your insurance company may not cover the damages if they get into an accident while driving without your consent.
Collision and Comprehensive Are Different
Comprehensive and collision insurance are two types of car insurance that go beyond minimum liability coverage. Comprehensive insurance covers damage caused by events such as weather, theft, or vandalism, while collision insurance focuses on insuring damage caused by accidents.
Comprehensive insurance is generally more expensive than collision insurance because it provides a broader coverage range. It also has a higher deductible. Collision insurance, on the other hand, has a lower deductible, but it covers fewer types of incidents. Ultimately, you should choose the type of coverage that best suits your needs and budget.
Insurance That Lapses Can Increase Your Rates
If you let your car insurance lapse, even for one day, you may see an increase in your rates when you go to renew your policy. Insurance companies view lapsed coverage as a sign that you’re more of a risk to insure and will often charge you accordingly.
In certain cases, your rates may even double. That’s why keeping your car insurance up to date is important. If you’re having trouble making payments, options are usually available, such as extended payment plans or reduced coverage.
Regardless of your situation, it’s always better to maintain at least some level of car insurance than to let your policy lapse. Otherwise, you could face much higher rates the next time you go to insure your vehicle.
Start Shopping for Car Insurance Today As you decide on a policy, ask lots of questions, so you understand precisely what you’re getting for your money. By understanding these factors about coverage, you can help make buying car insurance a little less of a headache. Follow these tips and begin your search for car insurance today!