Recently I googled the question, “How much does car insurance cost?”. Did an answer come up? No about three pages of paid advertisements of: Cheap $19 Auto Insurance, Fast Car Insurance Quote, Affordable Auto Insurance, GEICO and Progressive advertisements. Then a few that address the question.
So how much does car insurance cost? There are so many factors that come into play with gettting a car insurance quote. One website addresses the question with, “get a personalized car insurance rate from a local independent agent”. What is a personalized quote? Well isn't every quote personalized? . Your name, address, date of birth, drivers license, the year make and model of your car. That is the basic information to get a quote and find out how much car insurance will cost you personally.
How does the personal information impact your cost of insurace? Well just like your credit score you have an insurance score. How is an insurance score developed? Many factos combine to make an insurnace score. Your age, your address the type of car you drive, your credit score. But did you know that like paying your credit cards on time, paying your auto insurance on time has an impact? If you buy car insurance and then never pay, if you pay late or switch your car insurance too many times in a year, or have any accidents and/or tickets, this will impact your auto insurance premiums. Even a not at fault accident will impact your rates. What! Whoa! But I wasn't at fault that isn't fair.
Then you need to know how much coverage do you really need? Bodily injury limits is the coverage: if you have an accident and it is your fault and the other party is injuried. The State of Ohio only requires $25,000 per peson, $50,000 per accident and $25,000 in property damage. That's it folks. The cost of medical care is going up, are your comfortable with these low limits? Are you comfortable letting your most important assest pay for damages over your auto liability limits? What is your most valuable assest? To most of us it is our salary! Can you afford to live off 25% less of your salary if they garnish your pay check? Lose your home or your other assest? Increasing your liability limits are relatively inexpensive compared to the risk of lower limits. Sometimes at the difference is the cost of cup of Starbucks.
Then your car coverage do you need full coverage or liability only? How old is your car? If it is relatively new then you should have full coverage. Deductible range from $0 to $2000 for comprehensive and collission coverages: The higher the deductilbe will lower your rate. What does that mean? If you have an accident then you pay the deductible and the insurance company pays the rest to fix your car. If your car is totalled they will pay you the value of your car minus your deductible.
Do you need a rental car? That depends on if you have backup transportation or can you ride the bus to work while your car is in the shop? If not, then you should have rental reimbursement coverage.
Roadside asssistance and towing coverage can be added to a policy if you want your car towed after an accident. Or roadside assistance can provide tire changes, towing, emergency fuel delivery, lock out protection plus more depending on the level of coverage you select.
So the cost of insurance is a bit complicated to answer which maybe is why there are few ariticles written , “How much does car insurance cost?
Lastly, about those pages of fast quotes. Sometimes getting a faster quote, saving $50 might cost you in the long run and you dont even know it. Why? Because you are not aware that there are discounts for staying with your current carrier 24 months, 36 months and the up to 60 months. Calling the 800 number might save you money today, but you are not even aware in the long run it just cost you a bundle of money. Did they talk so fast your not sure what you purchased? That representative is more interested in getting a sale at any cost. Once they hang up they wont care that you might be under insured. I have seen people with great coverage call an 800 number. Tell me they saved a lot of money. They are confident they have the same coverage. How wonderful! Did you know you have state minimums 25,000 per person and $50,000 per accident liability only on your new car?
So what is the true cost of your car insurance? Check your bank account, your salary if you got into an accident today do you have the coverage to protect your assests? If not, then your car insurance might cost you thousands of dollars.
Written by Catherine Hufnagle an independent agent from Marysville Ohio. The Risk Eliminator contact Cat@hufnagleinsurancegroup.net.