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Where You Live Matters

When it comes to how much you pay for car insurance, where you live plays a significant role. Most people understand that things like driving record, claims history and the type of car you drive is factored into your policy price but most don’t know that location also plays a part.

If you live in a city and your driving takes place in a more congested area, you insurance will more than likely be higher because your chance of getting in an accident is higher. The more traffic, the higher the policy. Also, if you live or work in a high crime area, your chance of vandalism or theft is higher as well, hence, a higher policy rate. What type of weather you have in the location you live may also play a part. If you live in an area that experiences extreme weather often, it’s possible your rates could go up, not only because of possible damage to your car but also driving conditions.

What about living in one state vs. another state? Most people are not concerned about this because how much one pays for a premium is not enough to motivate someone to relocate to another state. However if you’re thinking of moving, and money is playing a part in your decision, check with the state DMV or a national company to find out the differences in premium price and coverage minimums from state-to-state. The fact that each state is different in what they require you to carry liability-wise and property-wise will also dictate how much you are required to pay and how much coverage you need to have as a minimum. If you find you’re living in a high-priced location, make sure you check with your agent to see if you’re entitled to any special discounts.

The Difference Between Comprehensive, Liability and Collision Insurance Coverage

Comprehensive, Collision and Liability insurance coverage - three types of insurance we should all have. But many don’t know the difference between the three so here’s a brief overview…

Comprehensive Insurance: This type of insurance covers damage to a vehicle, which is caused by an event other than a collision or overturn. Examples might include fire, theft, vandalism or other losses that are not the result of a collision as stated in the policy. A deductible can apply depending on the policy. This type of coverage is typically optional but highly recommended.

Liability Insurance: This type of coverage is not optional - it is required in all states and is probably the most important coverage you can have. It is insurance for what the policyholder is legally obligated to pay because of bodily injury or property damage caused to another person; it is a part of the general insurance system of risk transference. Actually, it’s made up of two different policies, bodily injury liability, and property damage liability.

Collision Insurance: This type of insurance covers most losses to the insured person’s own car caused by its collision with another vehicle and/or an object. Collision insurance will pay to repair or replace your car after an accident or collision. It is especially valuable when an accident occurs with an uninsured vehicle. A deductible can apply depending on the policy. Like Comprehensive coverage, this type of insurance is typically optional but highly recommended.

 Eight Ways To Save Money On Car Insurance (Cont’d)

Continuing from our last post, here are five more ways that you can typically save money on rates with most companies.

  1. The type of vehicle you drive plays a big part; the more modest or conservative the car, the more conservative the cost of insurance, under most circumstances. Also the age of the car can play a part in how much coverage you want or need, although there is a minimum amount of coverage you need in each state. Check with your state DMV. 
  2. Get a higher deductible. This is something you will have to weigh of course, pros and cons that is to raising your deductible. A higher deductible always equates to lower  rates.
  3. Where you live plays a part. The more metropolitan an area, the higher your insurance rates tend to be; the more traffic you drive in, the more chance of an auto accident occuring. Living in the suburbs or out in a rural area can save you quite a bit when it comes to auto insurance.
  4. Combine all your policies into one policy. Multi-Car policy discounts can go a long way in saving you money. Not only that, having all cars on just one policy is much more convenient than dealing with multiple policies and multiple bills to pay each month or semi-annually.
  5. Lastly, many insurance companies allow you to not only package your various cars into one policy, they also allow you to package all your insurance needs into one policy, i.e renters insurance, homeowners insurance and more. Quite often, they will give you another discount for doing so.

For anyone wanting to find any state-related DMV information, try using dmv.org. The site was created to provide easy-to-access information and resources for almost all DMV needs. This is not a government sponsored site.

It has information regarding drivers licenses, firt time drivers, driver education, driving records, DMV locations and hours, commercial driving, safety and statistic numbers, and much more. The site also comes with auto news information, how to guides, and driving school locations. It’s a site that has a lot of sponsored links on it (more than the avg Joe) and sometimes reduntant information, or too-general information, but all-in-all, it’s a relatively good source for DMV related content.

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