How Much Does Car Insurance Cost?

How Much Does Car Insurance Cost

There cannot be a definitive answer to this question, as the price of car insurance differs depending on what kind of driver you are. Although, a typical range of the cost of your deductible can be anywhere between $250 and $2,000

If you want to find out why this may be, carry on reading to discover what may affect your car insurance costs.

What factors can affect your car insurance?

The deductible – As briefly mentioned, there are a range of deductible costs. Your deductible is the amount you’ll pay before the insurance coverage begins. If you choose a higher deductible, you’ll often have lower premiums, as you would be responsible for more of the initial costs if an accident ever occurred.

Your driving record – If you’re involved in regular accidents, you are likely to pay more for your car insurance, compared to those who aren’t. The risk is too high for your insurer to cover you greatly if you’re in accidents often.

How often you drive – Using ground-breaking, location-based technology, your insurer can discover how much you drive. If you’re not on the roads as much, you’re less likely to be involved in an accident, lowering your insurance costs.

New to driving – if you have just passed your driving test, your insurance will be higher due to less experience on the roads, with a greater risk of being involved in an accident.

Types of coverages to consider

Now that we’ve looked at the different factors that can alter the cost of your car insurance, it’s also important to look at coverage types. With these, the more coverage you have, the higher your car insurance will potentially be. Here are just a few to consider when choosing your car insurance policy:

Collision coverage – This is one of the most important coverages to have, as it helps to repair or replace your own car if it is ever involved in an accident with another vehicle. Not only if you aren’t at fault, but if you’re responsible for the accident, you will be covered.

Comprehensive coverage – In brief, this kind of coverage helps to fix any damages to your car, or even replace it from an incident that wasn’t a car accident. This could be in cases where your car might be stolen or vandalized. If you live in an area particularly known for these crimes, investing in comprehensive coverage could save you a lot of money!

Liability coverage – Almost every state requires you to have this type of coverage, in order to even be on the roads. This type of coverage is broken into two parts: bodily injury liability and property damage liability.

Temporary transportation coverage – This one might not be necessary for everyone, but if you regularly rent cars, this could be for you. It covers the use of alternative transportation if your car is being repaired. However, this not only covers rental cars – you can also be reimbursed for travelling by bus and other forms of public transport! Although, this coverage can only be used if you have invested in both comprehensive and collision coverage.

With so many factors affecting the cost of your insurance, there are plenty of options to choose the policy that best suits you, saving you money in the long run!

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