Car insurance is an integral part of the insurance budget. There are many variables that cause rates to go up or down. 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 too much in protection.
What are your assets? – Do you own a house? Do you have multiple vehicles? Do you have a business? Do you rent an apartment? Your asset strength is a factor in selecting your liability limits. If you accidentally injure or kill someone in a car accident and have low liability limits on your auto policy, then your assets are next in line to pay for damages.
the age of vehicles – Newer vehicles generally require physical damage coverage from the lender. Older vehicles with high miles sometimes do not warrant physical damage. Physical damage rates can be adjusted up or down based on the deductible you choose.
The age of drivers – Adult fares, senior fares, and young driver fares make a big difference to the overall fare. Young drivers in vehicles with physical damage coverage can be very expensive.
What are discounts? – There are a number of discounts on car policies. The multi-policy discount is given by insurance companies for the purchase of auto and home insurance. Retirement discounts are available for the senior. Young drivers receive discounts for driver training. Some companies offer good student discounts for young student drivers who maintain a 3.0 grade point average.
Total Tort or Limited Tort – Many states have a limited incorrect selection discount. Tort is your right to sue for damages for pain and suffering in addition to the basic liability agreement. 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 harm, and wrong choices. Ask lots of questions about these three areas when shopping for auto insurance.