Title : Insurance 101 - What Determines the Cost of Auto Insurance
link : Insurance 101 - What Determines the Cost of Auto Insurance
Insurance 101 - What Determines the Cost of Auto Insurance
When it comes to auto insurance, price isimportant. But protection from the financial impact of
an automobile accident is the all important promise you buy when you purchase a policy. If you drive a car, then auto insurance is
a necessity. It's the law! Your insurance company calculates your insurance
premium by predicting future claims experience based on a variety of factors.
Some of the most important rating factors
include driving experience, driving record, and claims history. Other risk-based factors include the type
of vehicle you drive, how often and how far you drive, and your credit-based insurance
score. Using statistics and predictive models, insurance
companies can charge premiums based on the risk of future claims. The higher the risk, the higher the cost.
There are other factors not specific to you
or your policy that are affecting insurance prices across the nation. For example, unemployment has decreased and
the economy has improved, which means there are more cars on the road. And that leads to more accidents. Distracted driving is also on the rise, contributing
to the growing number of accidents and fatalities.
Enhanced safety features in new cars reduce
accidents and injuries, but they also make vehicles more expensive to repair and replace. Rising medical costs for those injured in
accidents also contribute to higher insurance rates. Don't worry! While it may seem like you have little control
over your insurance costs, there are things you can do to save money. How you drive your vehicle is completely within
your control, and those with the best driving records and claims histories pay less.
Bundling your auto and homeowners coverage
is another way to save money. Review your insurance policy with your independent
agent to make sure that you are carrying the right coverages and limits for your situation. Carrying higher deductibles can lower your
premium, but it will also increase your out-of-pocket expenses in the event of a claim. Before choosing this option, balance the money
you will save in lower premiums with the money you will spend when the claim is settled.
Many insurance companies offer discounts if
you take driver training or defensive driving courses, or if you carpool to work. How and when you pay your insurance premium
is often another pricing consideration. Protection + Price = Value. Contact your independent agent to learn more
about what you can do to ensure that you are getting the right insurance value!.
This is the article Insurance 101 - What Determines the Cost of Auto Insurance
So many articles Insurance 101 - What Determines the Cost of Auto Insurance this time, hopefully it can benefit you all. OK, see you in another article.
You are now reading the article Insurance 101 - What Determines the Cost of Auto Insurance with the link address https://dealersinsurance.blogspot.com/2018/09/insurance-101-what-determines-cost-of.html
Post a Comment