If you have a car, it is natural that you also would have insurance (vehicle) to cover the loss in case of motor collision due to an unfortunate circumstance that can result in physical or property damage. Or, it also could be due to the risk of financial liability. It is mandatory in some States to have a minimum level of insurance.  Many insurance companies, to remain in the market, offer attractive premium at discount prices based on various factors. A vehicle owner is provided with a card by the insurance company for a particular duration of time. Usually, the card is kept in the vehicle to come in handy at the time of a vehicle accident or inspection by cops. In recent times, States are accepting electronic versions of insurance proof.

In this article, you will be given information on how much is car insurance and the various factors taken to consideration for determination of cost.

how much is car insurance

How Much Car Insurance Do I Need?

If you have bought a new car after months of saving, you would have the following questions in your mind?

  • How much should I have to pay for the car insurance every month? Does it differ for various cars?
  • What is needed to lower fees for car insurance? Which is the best insurance policy?

Similar to all kinds of purchases, you want to get the maximum out of the premium you pay to the insurance organization. The next step you do is to research on the insurance policy with lowest possible premiums with the highest amount of benefits. But a look at the ongoing market will suffice to tell you whether you had a correct idea to get transport for your family or the other way.

Factors taken into account during your Auto Insurance

Insurance premium rates depend on various criteria such as no accident record/claim (clean record of driving), gender, age and model of car, your age and the distance you drive per year, the locality you live in and most importantly your credit score. A co-ordination is done between your past claims and low credit score. If you have a poor record in driving, you can end up paying more than $145 per month.

Best Policy

The best policy can be determined by you, but have you wondered why your friend boasts about having received the best coverage with low premium. Your friend is not born lucky, but chances are – he has opted only for the high stuff or he is a member of a group that allows him to pay fewer premiums. When opting for a premium, consider your job profile, lifestyle and family budget.

Types Of Cars And Insurance Cost

The cost of insurance will depend on the type of vehicle you own. If your vehicle is expensive, can attract thieves, then the premium will be more.

The Real Cost And The Premium

Opt for comprehensive coverage on your car. Do not focus on premiums, but determine the cost of your vehicle. If your vehicle costs around $4000 and your premium come to more than $2500/year for a three year term, you can suffer a loss. If your old vehicle met with an accident or got stolen, you will have to wait till the cheque is cleared to buy a new one. If you opt for a deductible in case of physical damage coverage, you are responsible for the payment of an accident until that amount. The insurance company has to pay for the remnant amount. Choose for the lowest which you can pay without a pinch in your wallet.

Additional Benefits On Your Auto Insurance Policy

When you search the market, you will be provided policies with additional benefits, but they will cost a little more. Road assistance can be opted for, along with emergency medical care. Kindly read each instruction carefully so that you opt for the best policies suited to you and your family. The other factor influencing insurance are localities with high number of accidents.

How Much Is Car Insurance?

It is possible to get information from many quarters regarding auto-insurance, but none can match the wisdom of an auto-insurance agent. Kindly select an agent with reference from a friend, relative and have a personal discussion with him/her. You can also request your life insurance organization if they have an auto-insurance branch. If you get an agent from the same organization, they can select the best policy with discounts you might qualify for.

Although you have an agent at your disposal, you have to compare the premiums and safety policies offered by various organizations. You can compare the price via the organizations’ website and narrow down on the one suitable to you.

You need minimum liability coverage to stay on the road. You will get different costs in various insurance organizations. Calculate them for one year or six month policy. This insurance is needed and it protects your valued assets in case of property damage or human accident. If this insurance is completed, then you have to pay for the costs from your pocket.

If you have paid the required deductible, the duration and amount will change. So take the help of your insurance agent to calculate perfectly your monthly premium and the costs that will be incurred for a specific period.

Remember, insurance is not needed when life is smooth, but when your vehicle meets with a collision or gets stolen. Have a one-on-one discussion with the policy representative on the amount of premiums paid after, in a minor accident. If, unfortunately, you had committed a minor accident, will the fees be same or hiked? Have an elaborate discussion on the premiums.

How Much Is Car Insurance Per Month?

According to a survey conducted by Quadrant Information Services, the average annual cost of car insurance in United States is $907.38 in 2014. The cost might vary from State to State, and all forms of coverage have not been included in the survey. 2015 has seen a steady increase in premiums of car insurance across the nation. Also take note, that the amount might vary as per the age of the applicant. Young drivers are usually charged more, because they tend to figure in more accidents.