Every state has its own law according to which you should have the minimum insurance coverage for your vehicle. Auto insurance is basically the agreement between the car owner and the insurance company to provide compensation in case of any accident or theft of the vehicle at the cost of regular premium money payable to the following insurance company.
There are so many big names in the field of auto insurance so you should do the necessary research to find out affordable auto insurance rates option to cover up your financial needs at the time of urgency. When you compare the auto insurance rates of various companies, you can get a clear picture of the one providing more cover with least premium cost.
There are many factors which determine the cost of your auto insurance rates up to a great extent. Out of those following factors some are under your control and some are not. While considering auto insurance premium these are the following points that the auto insurance company takes into consideration like, the type of car you own, your driving record, type of coverage you need, amount of discount you are entitled to etc.
The type of vehicle: The type of vehicle you own can greatly affect the amount of premium. Newer the car higher is the amount of insurance premium that you have to pay, as these vehicles are more prone to theft. Cars with more safety features according to the National safety standard are entitled to pay fewer premiums.
Driving record: Generally the insurance companies check your driving history of the past 3 years then decide the premium amount for your vehicle. If you have violated the traffic rules then you are supposed to pay more premiums. When you’re driving history is free of any kind of traffic allegation then you will be paying less premium value for your vehicle and vice versa.
Type of insurance coverage: There are many types of insurance coverage that you can opt for your vehicle. Those who want to have only liability coverage; they have to pay fewer premiums than those who opt for liability coverage along with collision coverage.
Discount criteria: There are various criteria from the insurance company, if you satisfy them you will be discounted on the total amount of premium value. Some of those criteria’s are as follows.
If you insure your home along with car from the same insurance company, then you can avail a discount of 30% or more.
If your vehicle has an anti theft alarm in a working condition, then you can have a discount of 5%-10%.
If you are a low risk driver, then you can avail 50%discount.
If you age over 65 or retired person, you can avail 10% or more discount.
Beside these there are many other criteria regarding discount options, which affect auto insurance rates up to great extent.