Car insurance is an important part of owning a vehicle. Several factors determine how much your premium will cost. Your age, location, driving history, and vehicle type all contribute to the cost. As a result, it is important to collect several quotes and compare rates. If you have a clean driving record and don’t have a lot of claims, you should be able to secure a low rate.
One way to get cheaper car insurance is to install a telematics device. Most insurers automatically apply this discount when you obtain a quote, and it can save you 5% to 10% per year. These devices will also prevent your car from incurring expensive damage. Those who drive less than 7,500 miles per year may qualify for a discount of up to 20%.
You should also consider liability coverage. This type of coverage covers you for property damage and bodily injury caused by an accident. This coverage will also pay for the medical bills of other drivers and for damages to their cars. If you cause an accident, liability coverage will cover these costs as well as any lawsuits. Liability coverage is mandatory in most states, but you can also choose to forego it if you’d prefer.
Deductibles are another important part of car insurance. Deductibles can range anywhere from $250 to $1,000. If you can afford a higher deductible, you can reduce your premiums. If you are in a car accident, a $500 deductible will lower your out-of-pocket expenses significantly.