Auto Insurance Facts That Matter to You March 31, 2007
Posted by admin in : Car Insurance Articles , trackback
Author: Levi Quinn
Article:
With so many choices currently available in the auto insurance
market, it can be quite difficult to know which products to
choose. Understanding some basic facts about the insurance
market can help you to make informed decisions. Following are
five facts that you need to know about the auto insurance market.
1) Premium Plan - Is it worthwhile? Many auto insurance
companies now advertise deluxe packages that include such
add-ons as “accident forgiveness” and “new car replacement.”
These plans do indeed offer top notch services above and beyond
standard insurance policies, but at a much higher price. Make
sure you understand exactly what you are paying for and whether
the benefit is worth the cost in your unique situation.
2) Shared Market versus Nonstandard Market - If your driving
record is below average you will have to search for alternatives
to standard auto insurance. Every jurisdiction offers what is
known as a shared market, in which poor drivers are able to get
car insurance from regular insurance companies. Naturally prices
are much higher in this market than in the standard auto
insurance market, as there is much more risk to the insurance
companies. However, there is now a third option. The nonstandard
market consists of a number of specialty companies whose only
business is insuring nonstandard drivers. Look for a nonstandard
as opposed to a shared or assigned risk company and you may save
hundreds of dollars.
3) Most and Least Expensive Cities in America for Auto Insurance
in 2006 - The most expensive city was Detroit, with an average
annual premium of over $5,800. The least expensive was Roanoke,
VA. There annual premiums averaged only $912. You may not be
able to plan a move based solely around insurance rates but if
you are trying to decide between two cities, auto insurance
rates along with other cost of living concerns may help you
choose.
4) Downtown is the most expensive - It is a well-known fact that
insurance rates are quite high in large cities as compared to
small towns and suburbs. What is not advertised, however, is the
fact that within city limits your zip code can drastically
affect your car insurance rate. By choosing to live in a
residential area rather than downtown, you may save hundreds of
dollars on your insurance premiums.
5) Purchasing auto insurance is a numbers game - It is
impossible to predict everything that could possibly happen to
your vehicle. It is possible that you may pay for insurance for
many years and never use your policy. It is equally possible
that you will need to make a claim almost as soon as you drive
off the lot. Therefore, it is crucial that you weigh the costs
versus benefits of varying levels of coverage and deductibles.
Consider what will happen if you have an accident and how much
money you can afford to pay out of pocket. Also consider how
much money you have available each month to pay your premium.
Shop around in order to get the best possible insurance for the
money you can afford to pay and be sure to consider various
deductible amounts as well.
It is difficult if not impossible to discover the “perfect” auto
insurance in the maze of products that are currently available.
Instead, take the time to learn the factors of the market that
most directly affect your rates. Considering your options
carefully will lead you to an auto insurance policy that will
work well for you.
About the author:
Find the best deal on the auto insurance coverage you need. For
money-saving tips and important information about
http://www.autoinsuranceratesdirect.com/buying/buy-auto-ins
urance-online.html.
visit AutoInsuranceRatesDirect.com today.
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