Finance

How Much Does Car Insurance Cost?

Getting your driver’s license is an exciting moment. You have the freedom to explore the open roads and take your car wherever you want to go. As great of a feeling that is, you may be brought back to reality when you remember how expensive driving can be. Not only do you have to pay for a vehicle, car maintenance, and registration fees, but you also have to invest in car insurance.

 

Car insurance is a necessary part of driving. Having insurance protects you and others in the event of an accident and is required in most places around the world. That being said, just because you have to pay for and invest in insurance, doesn’t mean you have to break the bank to do it. Yes, insurance can be pricey, but there are so many factors that go into calculating that cost. And you have the ability to compare different insurance providers to find the right fit for you with your coverage and the price. So, as you wonder just how expensive car insurance is, here are a few of the ways to calculate your personal cost.

You have choices of what you want to pay for.

 

While most drivers are required to get car insurance, there are different options available for your coverage. You’ve probably heard the terms “comprehensive coverage” or “collision coverage.” These are just a few of the examples of what kinds of coverage you can invest in. Each covers a different aspect of car ownership. Comprehensive coverage will pay for any damage caused by external factors like weather or theft. Collision coverage, on the other hand, covers repairs due to damage caused by an accident. You also choose a limit for your bodily injury and property damage liability for how much your insurance company pays out for car repairs or medical bills. These are just a few of the costs that factor into your overall car insurance rate. Be upfront with your insurance agent to discuss what policy choices may be the best for you and your lifestyle.

External factors affect your costs.

 

Beyond what you choose to pay for in your insurance plan, there are other factors that will affect your rate. Some are in your control, others are not. For example, depending on which state you live in, your insurance rate will be different from other areas. Sometimes even within the same city you could be paying different amounts depending on the neighborhood. So before you look at the cheapest way to ship a car to your new destination, make sure you aren’t paying a crazy upcharge in insurance in your new neighborhood.

 

The car you drive also affects your insurance. An old clunker is going to cost much less to insure than a brand new Mercedes. Plus, you have to factor in unique things about you as a person. Your age and driving record will all affect your car insurance rate. Younger drivers are riskier and traditionally men cost a little more to insure. Insurance providers will also check your driving record to see how risky or reckless your driving has been. If you’ve been in multiple accidents or have a bunch of tickets, you can expect to pay more for car insurance.

Compare and shop around for the best price.

 

If you watch television, you have probably seen a car insurance commercial, or two, or hundreds. They’re all over the place because the car insurance market is incredibly competitive. Everyone is vying for your business, which means you have the power to shop around. Compare insurance prices directly online to find what may be the best deal for you. You can save hundreds every year just by taking that simple step to do your research.