Comparing Auto Insurance
If someone is looking to compare car insurance, then they must understand there are several elements that will determine the best policy. Naturally, insurance companies will charge different premiums, but there will be a discrepancy in how much they will cover for car damage, property damage, and bodily injury.
Of course, the car itself is the biggest factor when figuring out the cost of insurance. What’s most important is the car’s type, color and age. If someone is driving a sports car as opposed to a sedan, then they will pay more because the former is more dangerous to drive. The color of a car may not be that important, but one in particular is. Reportedly, red cars are in more accidents than any other colored vehicle. Therefore, those who drive them will pay higher premiums. In most cases, a 20-year-old car is worth less than a 3-year-old car, so it will be cheaper to insure.
A person and their driving record are important when looking to compare car insurance. If a company sees that the insured has had an accident every year for the last five years, then they will pay more as opposed to someone who has none. Also, a younger driver will have a higher premium. With a spotless record, after turning 25, the price of insurance will to drop. Females, as opposed to males, will pay lower insurance rates because women are better drivers, statistically.
The price of insurance will also be affected by the distance travelled by the insured. A person who drives 15 miles to work will pay less the someone who drives 60 miles to work because the chance of an accident is lower. Unfortunately, a person’s area of residence will raise or lower insurance rates as well. If the insured happens to live in a wealthy neighborhood, then they will pay a higher rate because they can afford to.