Factors Affecting Car Insurance Rates

If you’re going to drive a vehicle, you shouldn’t even consider driving without insurance. In fact, almost every state has minimum liability insurance requirements and require you to car proof of insurance in your vehicle. These laws have been put in place to provide protection for you and those around you on the road. Without proper insurance protection it’s possible for you to end up owing medical expenses as well as property damages if you are at fault in an accident. Most state minimum liability requirements are set pretty low requiring only $15-25,000 of liability coverage per person and $50,000 per accident whereas the Insurance Information Institute recommends $100,000 per person and $300,000 per accident.

The next thing people want to know is how much their insurance is going to cost? There are many factors that go into determining the cost of your insurance. The biggest factors are your age, your driving record and the type of car you drive. Statistically males between the ages of 16 and 25 have the most accidents, so they pay the highest insurance rates. Add a few speeding tickets to the mix and you can really send your insurance rates skyrocketing. Once you reach age 25 rates begin to drop especially if you have a clean driving record with no accidents.

The type of car you drive has a big influence on prices if you are young and driving a Camaro you will pay much more than if you were driving a Buick LeSabre. Of course, the cars that are the most fun to drive are also the most expensive to insure. It is all based on how many accidents involve that type of car and the typical age of the drivers. Insurance is primarily based on statistics so if you fall into a category that has lots of accidents you can bet your insurance premiums are going to be high.

Once you have answered how much car insurance you need and how much is car insurance then the only thing left will be to determine which company you want to buy from and whether you want a local insurance agent to help you. It’s actually surprising to find that some of the companies that offer local agents can be just as competitive as those who offer it direct.