Insurance plays an extremely important role both in the life of the whole American society and in the life of an individual family. We will talk about car insurance simply because everyone faces this almost immediately upon arrival in the country.
The need for other types of insurance arises later, as income grows, real estate appears, a person becomes older, etc. In this article, we will discuss what factors affect the price of car insurance in the USA, and answer such questions like what kind of tickets affect your insurance.
Factors That May Affect Your Car Insurance Premium
There are a lot of factors affecting the cost of insurance. And what is important to know, there are differences between companies in the way they look at certain problems and what they offer because of this or that problem.
Moreover, it is very important to understand that an agent or broker representing a particular company knows about ways to reduce costs. Moreover, among the experienced and knowledgeable agents, there are those who work with a large number of new emigrants.
They know more details about how to get the best price out of the whole system of car insurance. Therefore, sometimes it may be smart to ask a side company for help with this.
So, the cost of car insurance is affected by the following:
- Car (price, age, model, the presence of some installed technical details). The agent, entering into the VIN system instantly receives all the information about the car.
- Use of a car and annual mileage.
- Driving experience, tickets, and accidents that happened in the last 3-6 years. Talking about tickets, we can say that almost all of them can affect it. You can read more in the linked article.
- Zip code of the place where the car stays every night.
- Coverage value and selected deductible.
- Special discounts.
Discounts That Affect the Price of Car Insurance
In most cases, discounts can be given in the following cases:
- 2 or more cars in the family are insured by the same company.
- Availability of home insurance in the same company where the cars are insured.
- The list includes engineers, doctors, teachers, etc. This discount applies to all drivers in the family.
- Keep in mind that the criteria by which to give or not give one or another discount depend not only on the company but on the agent. All agents know their job, but the knowledge of some details can anyway be different.
The most expensive part of car insurance is Collision. And this is quite easy to understand – the car is being damaged and it should be repaired. Manipulating deductible in this situation, we see a very serious difference in price.
In principle, the cost of Liability is comparable to the cost of Collision, but we can only manipulate Liability in the amount of coverage. But this is absolutely unacceptable. Otherwise, we risk very serious losses in a serious accident. Therefore, if you need to stay within a modest budget, then increase the deductible, but do not touch liability.