Car Insurance

Insured Driver: 3 Key Things You Must Know About Car Insurance

According to AAA, the average price an insured driver pays for auto protection is $1,202 per year. Car insurance company rates and necessary coverage amounts change between locations. Not only that, factors like your marital status and age even influence your bill.

In order to make sure you have the best coverage, you need to do your research. So keep reading to learn 3 important things about car insurance.

1. Coverage Amounts Vary Between Locations

The amount of coverage you have for your car is primarily up to you; however, you will pay different coverage minimums depending on what state you live in. Most states require drivers to have car insurance and meet minimum coverage requirements as it helps pay for damages or losses. The only state that does not have car insurance requirements is New Hampshire.

Typical policies will need you to have personal injury protection, bodily injury liability, property damage liability, and uninsured or underinsured motorist coverage. However, these mandatory elements only make up part of a comprehensive auto insurance plan. Purchasing just your state’s minimum requirements means you will likely be left with a lot of out-of-pocket costs in the event of an accident. 

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No-Fault States 

Additionally, you should know if you live in a “no-fault” state. The no-fault states are: 

  • Minnesota
  • Pennsylvania
  • Hawaii
  • Utah
  • Kentucky
  • New York
  • Michigan
  • Kansas
  • New Jersey
  • North Dakota 
  • Florida
  • Massachusetts

In these states, each driver involved in an accident is required to make an insurance claim with their company. In addition, drivers must have personal injury protection coverage to help with medical bills for the car’s occupants. 

2. Your Car Insurance Rate is Impacted by Different Factors 

The most critical factors that may cause your insurance prices to spike or lower are the driver’s age, state minimum liability requirements, and the model and make of the car. Drivers under the age of 25 and over 65 are considered riskier and may pay higher rates. Newer vehicles with good safety ratings are less expensive to cover.

Other factors that may influence what you pay are your driving history, past violations, how much you drive, marital status, and gender. All of this, of course, changes with time and will vary company by company. 

3. You Can Lower Your Costs Without Compromising Coverage

Lower auto insurance payments do not have to mean poor coverage. You can decrease your costs in a number of ways, including: 

  • Using multi-line or multi-car discounts
  • Taking a defensive drivers course
  • Applying for a good student discount 
  • Maintaining a clean driving record 
  • Lowering your yearly mileage 
  • Picking a higher deductible 
  • Boosting your credit score 
  • Installing an anti-theft system 

Lastly, shop around for the best policy for you. No two insurance companies rate vehicles or drives by the same metrics, so you could pay drastically different bills depending on who you choose. Use this comparison tool to see how much money you could save on your insurance payments each month. 

The 3 Key Things Insured Drivers Should Know 

Car insurance is an indispensable resource to protect you and everyone else on the road. To be an informed insured driver, understand how your location impacts costs and what discounts you might be eligible for.

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