If you own a car, you need insurance. Plain and simple. It’s not just a preference, you’re actually required by law. Before we get into some important information you need to know about car insurance, let’s quickly talk about where to start and how to find the best rate for you.
Where to Start?
Finding the right type of coverage is important, but how can you find the best price? A great option is with GetJerry.com. Think of Jerry as the Fortuna Credit of car insurance. Just as Fortuna Credit lets you compare rates on personal loans, Jerry provides the fastest, easiest, and only fully automated platform to compare and save on car insurance.
Powered by artificial intelligence, Jerry serves up customized quotes in 45 seconds, allowing customers to save an average of $800 per year on car insurance
With no long forms, no spam calls or emails, and only the best quotes from the nation’s top providers, Jerry makes it easy to save big on your next policy. And the best part? Just like Fortuna Credit, it’s free to use. Check GetJerry.com to see how much you could be saving on car insurance.
Ok, now that you know where to find car insurance, let’s review some important things you should know about it.
What is Car Insurance?
A car insurance policy is a contract that protects you from financial liability in case of an accident. As the owner of a vehicle, you agree to make monthly payments, known as a premium, to the insurance company. In return, your insurance can pay to fix your vehicle, another driver’s vehicle, or cover your medical bills in the event of a covered incident.
But to enjoy these benefits, you first need to pick a policy.
Typically, states require liability insurance, which pays the other driver’s mechanical and medical costs if you cause an accident. If you have an auto loan on your car, your lender may require “full coverage,” which includes collision and comprehensive insurance to cover your vehicle in case of an accident, natural disaster, or theft.
Of course, you can also buy other types of coverage, such as personal injury protection or uninsured motorist coverage. Keep in mind that the more you add to your policy, the more you’ll pay in premiums.
5 Facts to Know About Your Car Insurance
Auto insurance provides drivers with a financial safety net in case of an accident. Since this is required, you should know five important facts about your policy – and its costs.
1. Car insurance premiums are calculated according to you
Car insurance premiums are calculated according to how likely the insurance company thinks you will file a claim. Factors that may affect your premium include your:
· Age, gender, and marital status
· Credit and insurance history
· Driving record
· Deductible (the amount of damages that is not covered) and coverage amount
· State or city of residence
2. Not all insurance policies are made equal
When it comes to car insurance, you can often build your policy to meet your needs. In addition to liability, you might add collision or comprehensive coverage, roadside assistance, or rental insurance.
You can also insure each type of coverage to different amounts. For instance, you may buy $25,000 in coverage to pay for damage to someone else’s car, or you might decide you can afford $50,000 in coverage.
The more coverage you buy, the higher your premiums will climb. On the flip side, the cheaper your coverage, the more you’ll have to pay out-of-pocket.
3. Lapsed insurance can raise your prices
Many insurers view licensed but uninsured drivers as a higher risk. If you let your insurance lapse – even if you’re not driving your car – your future premiums may rise as a result.
4. Car insurance follows the car, not the driver
Car insurance covers just that: your car. That means if you loan your vehicle to a friend or family member, you’re loaning them your insurance in the event of an accident. As such, it’s best not to let anyone regularly drive your vehicle without adding them to your policy (unless it’s an emergency).
5. What is the average cost of car insurance?
The cost of insurance varies by driver, vehicle, state, insurance company, and add-ons. But if you’re looking to save money on car insurance, it’s helpful to have a baseline. According to Quadrant Information Services, full coverage insurance in 2020 cost $1,674 per year on average, or $565 for liability only. But according to AAA’s Your Driving Costs study, full-coverage on a medium-sized sedan was only $1,202.
7 Ways to Save Money on Car Insurance
Now that we’ve covered a few factors that go into calculating your premium, let’s look at a few ways to help you save.
1. Take advantage of available discounts
Car insurance companies often offer discounts for drivers who qualify under specific circumstances.
For instance, one of the easiest ways to save money on car insurance is to bundle multiple types of insurance, such as home and auto together. The same is true of insuring multiple vehicles on the same plan.
You can also check if your insurance company offers discounts for:
· Safe driving or low annual mileage
· Maintaining good grades as a student
· Installing or buying vehicles with anti-theft devices
· Paying six months or one year in full
· Signing up for email documentation
· Setting up automatic payments
· Taking a defensive driving course
Many insurance companies also offer usage discounts if you install an app on your phone or a device in your vehicle. These programs track how much, when, and how well you drive. Then, based on your driving record, you may qualify for more discounts. You might even get a loyalty discount for staying with a car insurance company.
2. Drop unnecessary coverage
If you take out a loan to buy a vehicle, you’ll likely need full coverage. But if you don’t need additional coverage, or pay for other add-ons, it might be worth trimming down your policy.
For instance, if you drive an old clunker that would cost more to repair than it’s worth, paying $1,200 per year for a full coverage policy probably doesn’t make sense. Or if you have AAA but also pay for roadside assistance, you might consider dropping the extra roadside coverage.
3. Opt for a higher deductible
Your deductible is the amount you’ll pay out-of-pocket before insurance payments kick in. Typically, the lower your deductible, the higher your premium, and vice versa. Raising your deductible from, say, $250 to $1,000 can substantially lower your premium.
4. Downsize your vehicle
Another way to save money on car insurance is to buy less car. SUVs, flashy sports cars, and vehicles that make prime targets for thieves tend to run greater risks for insurance providers. Insuring their value often costs more in annual premiums.
Conversely, if you opt for smaller, safer vehicles, or even electric or hybrid cars, you might see your premium shrink.
5. Keep your record clean
Drivers who maintain a clean record pose less risk to insurance companies. As such, the fewer accidents and tickets that pop up on your record, the lower your premiums will run. If you cause a (usually minor) accident, a quick trip to traffic school can scrub your record clean again.
6. Watch your credit score
High credit scores generate tons of financial benefits. But did you know that some companies also factor your credit score into your insurance premium?
It’s simple: responsible borrowers tend to make fewer claims, which presents less risk to insurers.
Keep track of your credit score for free in the ‘My Credit’ tab of your FortunaCredit.com dashboard.
7. Shop around for the best policy
Lastly, don’t be afraid to shop around for car insurance policies. Every company offers different prices and discounts, even for the same driver and vehicle. Try to quote at least three to five different companies. Insurance companies like MetLife to USAA insurance claim buyers can save up to $707 annually by switching.
Keep in mind that the lowest premium may not be the cheapest or best insurance, especially after an accident. Factoring in customer complaints and service is important too.
What to know when comparing car insurance
If you’re on the hunt for a new policy, look at factors such as:
Coverage
The best way to save money on car insurance is to only buy what you need based on your vehicle and any lender requirements. While liability is legally required in most jurisdictions, you’ll also want to consider whether you may need or benefit from:
· Comprehensive
· Collision
· Uninsured motorist
· Personal injury protection
· Or roadside assistance coverage
Discounts
Every insurance company offers its own discounts, including loyalty discounts. If you’d like to pay less for the same coverage, seek out reputable companies that offer cheaper prices or ongoing discounts.
The company’s complaint ratios
When comparing car insurance companies, examine each provider’s complaint record. After all, you don’t want to pay good money for poor customer service. Additionally, watch out for companies that have a history of denying claims regardless of liability and their obligation to pay. If you’re not sure where to start, the National Association of Insurance Commissioners’ Consumer Information Source maintains a ledger of most providers’ complaints.
Save Money on Car Insurance with Jerry!
If you’re looking to save money on car insurance, start by visiting our partners at GetJerry.com. Think of Jerry as the Fortuna Credit of car insurance. Just as Fortuna Credit lets you compare rates on personal loans, Jerry provides the fastest, easiest, and only fully automated platform to compare and save on car insurance. Powered by artificial intelligence, Jerry serves up customized quotes in 45 seconds, allowing customers to save around $800 per year on car insurance.
With no long forms, no spam calls or emails, and only the best quotes from the nation’s top providers, Jerry makes it easy to save big on your next policy.