What Affects Auto Insurance Cost

Reader’s Question:

What affects my auto insurance cost?

Maia

Las Vegas NV

 

One is the driver which can be you – the policyholder or the would-be policyholder. Your personal factors can affect your auto insurance cost such as age, gender, credit history, driving record etc.

The second main factor that can affect your auto insurance cost is your car. If you are going to get comprehensive and collision coverage, your type of car can greatly affect your insurance cost. Having expensive high-end car means it is expensive to repair and it will cost a lot to be replaced. As such, this kind of car can give you a high premium compared to modest sedan or minivan type of cars.

Cars that often show up in the crime bureau’s list of top types of cars being stolen are expensive to insure too. It is because car insurance company puts a premium to its being high risk for theft.

The third main factor that can affect your auto insurance cost is the coverage you want to include in your policy. If you want a low insurance cost, then just buy the basic minimum coverage required by your state’s law – which are bodily injury and property damage liabilities coverage. These 2 required coverage will answer the injuries and damages you and your car cause to innocent third parties.

Of course there is always trade off in getting a cheaper insurance, which is it might not be able to cover the overall cost in case you hit a person or another car. Basic required insurance coverage does not cover the expenses incur from mishaps to which you are at fault of. As such, you might need to shell off from your own pocket. If you want to avoid this, then you need to increase your coverage and get other types of coverage – like collision and comprehensive coverage.