In the United States, you are mandated to have car insurance. If you don’t have car insurance and a police officer stops you on the road, you will be given a ticket and fined. Or worse, you if you’re involved in a serious automobile accident and held liable, you will have to pay thousands of dollars. One of the reasons why drivers do not purchase car insurance is that it tends to be expensive, and in some driving-obsessed cultures, such as in southern California, car insurance is extremely expensive. First Avenue Insurance, a San Leandro Insurance broker shared with us the most common factors that raise car insurance prices:
- The most obvious factor that affects the price of your car insurance is your driving history. If you have moving violation tickets or have been held liable for one or more automobile accidents, you will be viewed as a high-risk driver, which means the price for insurance will be hiked up.
- The second factor that usually affects your car insurance is your location. For example, it is expensive to be insured in Los Angeles, California, due to the driving culture and standard traffic jams that impact the city, while having car insurance in an isolated small town in Montana will be cheaper. Prices from state to state will vary and will depend on the levels of traffic, accidents and crime. Each state also manages and enforces automotive laws differently, which can affect car insurance prices.
- The third most significant factor that affects the pricing of your automobile insurance is your age group. The highest priced age group is younger, teenage drivers, as they have less experience driving. Insurance companies have no proof or records to judge the capabilities of teenage drivers.
Before purchasing car insurance, research different quotes. Although some insurance companies might offer you cheaper rates, they also tend to be less qualified to deal with claims. As in most cases, the price you pay for car insurance will reflect the quality of insurance you get in exchange. You can use car insurance comparison sites to review customers’ comments. Having an insurance broker on side may help. Insurance brokers tend to provide a quote from various companies while helping you choose the best to fit your situation. If you’re in an accident—and almost all drivers are involved in at least one minor accident during their lifetime—you want to feel confident that the insurance company you’re with is offering you the most complete services. Good insurance companies will take care of all details related to your claim within the first week after the accident occurs. They will also make you feel supported through the process and be open to answering all of your questions.