Car insurance is required in most of the states of the U.S. The reason for this is that driving can prove to be very costly in case of an accident, so what companies decided to do is to charge premiums that meet a yearly rate in order for a driver to be covered if anything bad was to happen. The cost of having car insurance however, keeps rising and with the premiums as expensive as they are we wonder if there is ever a way of getting low-cost car insurance.
The cost of having car insurance can depend on many things. The thing is that with every car insurance company advertising their lower rates it’s hard for Americans to see the differences between them. Phrases like “GEICO can save you a bunch of money on your car insurance” or “with Progressive you can see the rates of all the other companies, and you will pick us” have gotten to our head, and the honest truth is that the public cannot decide what cheap car insurance is to them.
As said before automobile insurance has different factors in order to be cheap. One is the type of coverage that you have. You can purchase the basic coverage (for most states is Bodily Injury and Property Liability), full coverage (which included everything from paying the damage of your vehicle and sometimes even giving you a rented car in order for you to keep driving after an accident) or somewhere in between.
Most Americans tend to buy their cars through credit that is given to them by the car dealerships. If you have a vehicle that you are still making monthly payments it’s important to know that more than likely you will be required to have full coverage (in case of an accident). For those people that have their cars paid already, they can go with any coverage they want, which would make it less expensive.
Another factor in car insurance is the year, make and model of the vehicle. SUV’s have a better safety rating that sport cars and for this reason insurance on SUV’s would be less expensive. However, SUV’s like Cadillac Escalade’s are stolen more often than any other vehicle and this might make the price a little higher. If you have a family compact car, a mini-van or a pick-up truck, expect to pay less money on automobile insurance than those who have luxury cars, nice looking SUV’s and fast sports cars.
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There are many ways of looking for the low-cost car insurance that you need. Before even thinking about getting car insurance you must first do your homework. This requires finding out your state’s auto insurance requirements which include types of coverage required and if your state is a “no fault” state. You can also write your auto insurance profile specifying what kind of car you have, who else will be in your policy, where you drive, what your driver record is and what optional safety features your automobile has.
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