Philadelphia, PA
-You are sure to know that if you own a roadworthy car, you need at least the basic level of insurance coverage in order to drive it legally on roads; unless your car is officially registered as off-the-road. But before you proceed with getting auto insurance, you should know the following four important things.
There Are Different Types of Coverage
You are required by law to have liability insurance in case you are involved in a road accident. But there are various other types of coverage that you may want or need. For instance, collision coverage pays for repairs to your car if you are at fault in an accident. You can also get optional coverages like roadside assistance, gap coverage, rental reimbursement, and uninsured or underinsured motorist coverage.
Many people opt for comprehensive coverage. While comprehensive coverage is usually the most expensive type of coverage, it is often cheaper than getting separate collision coverage and liability coverage, so many drivers choose this option.
And with comprehensive coverage, you gain coverage for other things like fire, theft, and vandalism.
So, make sure you carefully look through the different types of coverage that are available so that you understand each option and can then decide which coverage you want.
Can You Get Car Insurance with No Down Payment?
There is no option for getting car insurance without a down payment. Insurers simply will not take the risk of covering a driver for a road accident without receiving at least one month’s payment.
However, you do have the option of paying your car insurance in monthly or quarterly payments or in one lump sum, so you could choose the option that best suits your financial situation.
And while you cannot get car insurance without a down payment, you do have the option of comparing different insurers to find the cheapest coverage and payment options that suit you the best.
Various Factors Affect Your Car Insurance Rate
While you should most definitely compare different insurers and get quotes from various insurance companies to find the right coverage at the best price, you should be aware that various factors can affect your car insurance rate.
For example, during the underwriting process undertaken by car insurers, applicants are placed into groups based on how many claims the insurance company believes the drivers may have to pay.
The insurer will look at things like how many accidents you have been involved with and how many tickets you have received.
So, your driving record will be taken into account.
Furthermore, many insurers will look at your credit history. Typically, if you have a poor credit history, you will have to pay more for your auto insurance.
The car you drive can also affect your insurance rate. For instance, if you drive a car that is expensive to repair, you will probably pay a higher amount than if you drove a car that is less costly to repair.
So, if cost is a factor, you will want to put off buying a luxury Convertible Maybach car, for example, until you have funds to spare.
And if your model of car is less likely to be stolen, you could pay less than drivers who own cars that are generally stolen the most.
Higher Deductibles Can Lower Your Premium
At the end of the day, insurance prices are based on how much money the insurer believes it could have to pay out.
If you agree to pay for a larger portion of your damages by raising your deductibles, your insurance company will not have to pay as much if you make a claim.
Therefore, by raising the deductibles you pay, you should be able to get a lower premium. So, spend time working out whether it is worth your while to pay higher deductibles.
