5 Things to Consider When Purchasing An Auto Insurance Policy

There are lots of things you will need to think about when looking for auto insurance. Will you need multi-car insurance? Is it for your business? A lot of people don’t know what they need so we made this list to help make it clearer for you.

Your Deductible

Your deductible is how much you pay before your auto insurance policy pays for damages after an accident or other incident with your automobile. Consider how much you can realistically pay out of pocket in the event of an accident and don’t forget to have legal support behind you. If you purchase insurance with a lower deductible, the overall premium will be higher. This may be a better option if you would strain your finances paying a large sum at the time of an incident. You are basically spreading out the payment so it’s a question of do you pay more now or later? A higher deductible means a lower monthly rate.

Liability Coverage

This part of your policy covers your personal assets including your home, valuables, or even savings in the event of a lawsuit. Insurance providers usually break this down to three categories with maximum limits for each: Bodily injury, injuries caused by an accident, and property damage.

Your Car

The make and model of your car will directly affect your auto insurance policy. Insurers are more weary to cover a car model that has a history of theft or low safety ratings. This is also a warning for the consumer. If you’re looking for an insurance policy that fits a certain budget, make sure you purchase a car with high safety ratings and low history of theft. You may even receive discounts for cars with certain safety ratings.

Your Driving Habits

Your daily commute and the miles you drive annually will play a role in determining your auto insurance coverage as will the place you call home and park your car. Insurers look at the honest statistics. The more you drive, the more likely you are to crash. Also, since urban areas deal with higher rates of theft, city dwellers are more likely to pay higher rates than those in rural areas.

Your History

For those with a spotless driving record, purchasing a policy will be a little bit less expensive. A good credit score can also improve the overall cost of your auto insurance. If you have an extensive record of poor driving, you will be in for a higher rate. Time is your friend. The longer you go between problems, the better off you are. Even a major accident will become less of a factor for purchasing insurance and determining the cost the further in the past the event occurred.