Facts About Insurance

Facts About Insurance- 6 Factors that Affect Your Car Insurance Rates

Understanding the basics of car insurance can be difficult and seem frustrating when looking for car insurance.

Below, we have outlined important facts about insurance that will help you have a better understanding of insurance and how it works.

Facts About Insurance
Facts About Insurance

Facts About Insurance Fact 1: Rating Factors

Insurance premiums are calculated using rating factors. These factors include marital status, age/gender, and location.

Female Vs. Male DriverAverage Monthly Rate
Progressive Insurance Female Driver$140
Progressive Insurance Male Drivers$188
Fair or not…gender affects the rate of your car insurance premiums.

For example, if you look at the snapshot above of an actual monthly premium for a male driver using Progressive, they are paying a noticeable amount more than a female driver.

Statistics also show that married people get in less accidents and/or cause less property damage in the event of an accident.

Younger drivers cost more to insure because they are considered higher risk, usually the possibility of getting into an accident is greater than someone with more driving experience.

Facts About Insurance Fact 2: Credit Scores Impact Your Insurance Premiums

Credit plays an important role in insurance, just like it does when making a big purchase like buying a home or financing a car.

Facts About Insurance
Facts About Insurance

Insurance companies look at credit to determine what type of risk you are; low, or high risk.

Good. Vs. Bad CreditAverage Monthly Rate
Nationwide Good Credit$140
Nationwide Bad/Poor Credit$169

A customer with excellent credit has a history of making payments on time, and will receive a cheaper insurance rate.

Facts About Insurance Fact 3: Cancelling Your Insurance Will Cost You

Whether you own a vehicle or not, you should keep your auto insurance active.

If you sell your car, or no longer need insurance on that vehicle, consider switching your policy to a Non Owners, Or Broad Form policy.

This way you will not lose a huge discount for having continuous insurance when you need to purchase a new policy.

You can get different types of insurance policies to reduce the cost if you have sold your vehicle, until you buy a new one.

Facts About Insurance Fact 4: Insurance Prices Vary Upon Companies

Car Insurance companies specialize in different things, whether it be SR22 Insurance, high risk drivers, vintage/foreign vehicles, etc. Companies like Progressive, while premiums are higher for high risk drivers, might have better deals.

However, some companies will decline coverage for that same customer because they are a greater risk.

A lot of companies will not offer coverage for a customer with an excessive amount of points, or may not offer coverage for foreign vehicles, like the BMW.

Progressive InsuranceAverage Monthly Premium
High Risk Driver/Poor Driving History$163
Insurance companies are not one size fits all.
Farmers Auto Insurance Average Monthly Premium
High Risk Driver/Poor Driving History $194

Facts About Insurance Fact 5: Insurance Discounts Will Save You Money

Many companies offer discounts, like continuous insurance discounts, bundling discounts, Accident Free discounts, safe driver discounts, and Paid In Full Discounts.

Potential Discounts Available
Advanced Quote
Paperless Discount
Homeowners
Education Discount
Military
Continuous Insurance
No Accidents or Violations
Multi Vehicle
Multi Policy
There are so many potential discounts that aren’t even listed here!

Check with your insurance provider to see what types of discounts they offer.

Facts About Insurance Fact 6: Coverages Affect Your Premium

Insurance premiums will vary depending upon the types of coverages you have.

You can choose to only carry liability insurance, which is the bare minimum requirements.

Progressive InsuranceAverage Monthly Premium
Liability Only Insurance$82
Full Coverage Insurance$160
Ask one of our brokers if you have unnecessary coverage!

You can customize your policy by adding on additional coverages like Uninsured Motorist or Medical Payments.

Aside from liability, you can choose to carry full coverage which covers the vehicle in the event of an accident. Adjusting your deductibles will impact the rate, as well as extras like Rental Reimbursement and Roadside.

Why Insurance Is Important?

Understanding Facts About Insurance and why insurance is important is vital for protecting yourself and your assets. Insurance provides financial security and peace of mind by mitigating risks associated with unforeseen events. Here are a few key reasons why insurance is essential:

  • Financial Protection: Insurance helps cover the costs of unexpected events such as accidents, illnesses, or natural disasters, preventing you from facing significant financial losses.
  • Legal Requirements: Certain types of insurance, such as auto insurance, are mandatory by law in most states to drive legally on the road.
  • Asset Protection: Insurance safeguards your assets, including your home, vehicle, and personal belongings, ensuring you can recover financially if they are damaged, stolen, or destroyed.

By investing in insurance coverage tailored to your needs, you can protect yourself and your loved ones from financial hardships that may arise from unforeseen circumstances.

Key Reasons Why Insurance is Important:

  • Financial Security: Protects against unexpected expenses.
  • Legal Compliance: Ensures compliance with legal requirements.
  • Asset Protection: Safeguards your valuable assets.

What Are The 3 Most Important Insurance?

When delving into Facts About Insurance, it’s essential to understand the three most important types of insurance that can safeguard your financial well-being and protect your assets. These include:

  1. Auto Insurance: Protects you financially in case of accidents, theft, or damage to your vehicle. It’s mandatory in most states and typically includes liability, collision, and comprehensive coverage options.
  2. Homeowners Insurance: Provides coverage for your home and personal belongings against damages caused by perils such as fire, theft, or natural disasters. It also includes liability protection in case someone is injured on your property.
  3. Health Insurance: Offers financial protection against medical expenses, including doctor visits, hospitalization, and prescription medications. Health insurance helps ensure you have access to necessary healthcare services without facing significant financial burden.

By having these three essential types of insurance coverage, you can mitigate risks and protect yourself and your loved ones from unexpected financial hardships.

Key Insurance Types for Comprehensive Coverage:

  • Auto Insurance: Protects your vehicle and offers liability coverage.
  • Homeowners Insurance: Safeguards your home and personal belongings.
  • Health Insurance: Provides financial protection for medical expenses.

What are the key factors affecting insurance rates?

Insurance rates can be influenced by various factors, including age, driving history, location, type of coverage, deductible amounts, credit score, and the type of insured property.

How can I lower my insurance premiums?

You can potentially reduce insurance premiums by maintaining a good driving record, bundling multiple policies, increasing deductibles, improving your credit score, and taking advantage of available discounts.

Why choose us for your insurance needs?

We provide tailored insurance solutions, competitive rates, and a dedicated team to assist in finding the right coverage. Contact us at 1.888.445.2793 for personalized advice and quotes.

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Facts About Insurance

Last Updated on by Camron Moss

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