Everything You Need To Know About Car Insurance

Monday, June 10, 2019

Information To Help You Save


There are almost 250 million drivers in the United States. That means that three/fourths of the U.S. drives and needs a car. Most drivers are between the ages of 45 and 49 years old. And there are more male drivers than female drivers. These statistics come from the Office of Highway Policy Information. And this means that as a whole, Americans truly depend on their vehicles. This is good news for the insurance companies because for every driver, there needs to be an insurance policy that goes along with them. Even though around 20 percent of all drivers don’t carry insurance or lack the proper coverage, the amount of insured drivers is in the hundreds of millions.

Getting It Right

Getting the facts straight when it comes to choosing cheap car insurance means being diligent and doing your homework. Because there are many insurance companies and factors that decide rates, you will want to know where you stand. Are you a first time driver? Maybe you just bought a brand new car and need full coverage for the first time. Do you collect cars and only need a non-operational insurance policy? Or perhaps there was an accident while you were driving drunk and you have a DUI on your record? There is a solution to every problem.

Getting the right cheap car insurance with the best company for you can happen in a few different ways. You can do an online search and compare prices by getting free quotes. Or you can talk with a broker or agent directly and they can send you in the right direction. Every insurance company is a little different and has different qualities to offer. You must ask yourself: do I want great customer service? Do I need to really save money on my car insurance? Can I change insurance companies right now?

What To Expect

When searching for car insurance, no matter what state you live in, you will need to know what is legally obligated. Here are some examples of what certain states require for car insurance.

California has a state minimum amount of car insurance that obligated you to cover the other party involved in the accident if you are at fault.

When purchasing insurance in the state of California, you will need the minimum coverage.

Here is what that includes:

  • Bodily Injury Liability Limits: $30,000 per occurrence/ $15,000 per person
  • Property Damage Liability Limits: $5,000 per occurrence

The above requirements do not protect you and your own vehicle. They only cover the costs of the other party involved in an accident. For you and your own vehicle to be covered, you will need more.

Here are some other options:

  • Collision coverage will protect you and your own vehicle in an accident.
  • Comprehensive coverage will cover theft and other types of damages to your vehicles not incurred in an accident.
  • Towing and Roadside Assistance are there as a safety net in case you break down. You could be fully covered or reimbursed for these costs.
  • Uninsured Motorist coverage makes sure your costs are still paid even when the other party fails to carry insurance. You may not think this happens, but statistically almost 20% of all drivers in California fail to have the proper insurance coverage.
  • You can also purchase Medical coverage which will help pay for any medical expenses.
  • Glass coverage is an added coverage which just covers any broken glass on your vehicle.
  • Personal Injury Protection is similar to Medical coverage but covers a wider range of expenses.
  • Rental Reimbursement is useful for when you need a rental car after an accident.

Florida has a different law regarding cheap car insurance. 

State Car Insurance Requirements

  • Florida state is a “no-fault” state. This means that an individual’s insurance company covers their losses regardless of fault.
  • Florida requires a minimum of $10,000 for Personal Injury Protection.
  • Florida also requires a minimum of $10,000 Property Damage Liability.
  • The average 12-month auto insurance premium in Florida as of December, 2016 was $1,654. That’s a $124 increase over the 2011 rates, which is due in part to claims arising from the high number of uninsured drivers.
  • Driving without insurance in Florida can result in a suspension of your registration or driving privileges, and a reinstatement fee of between $150 and $500, plus the cost of insurance.

Arizona also has a legal requirement for car insurance but it is different than California:

Here is what is expected of drivers in the Four Corners State:

  • Bodily Injury Coverage with a minimum of $15,000 per person and $30,000 per accident.
  • Property Damage Liability Coverage at a minimum of $10,000
  • Uninsured Motorist Bodily Injury Coverage of at least $15,000 per person and $30,000 per accident.
  • Underinsured Motorist Bodily Injury Coverage at a minimum of $15,000 per person and $30,000 per accident.
  • There is more insurance you can add if desired.
  • The above insurance only covers the other party involved in a crash.
  • The Uninsured Motorist coverage makes sure that you are not paying out of pocket if someone else is breaking the law.
  • When people drive without insurance, it is often hard to get them to pay for any damages they may have caused.

New York residents will need to carry insurance for their car no matter what. And New York tends to be a little cheaper than the average state.

New York’s Car Insurance Requirements

  • $10,000 for property damage, per single accident
  • $25,000 for bodily injury/$50,000 for death of one person, per single accident
  • $50,000 for bodily injury/$100,000 for death of two or more persons, per single accident
  • For more information, here is a link to the New York State Department of Motor Vehicles’ insurance page.

New York state has one of the lowest rates of uninsured motorists in the country, which is partly why the average annual auto insurance premium is also low. Stricter insurance and registration laws heavily influence this statistic, as does the relatively low number of vehicle owners.

How To Save

When looking for car insurance, no matter what vehicle you drive, there are certain things you can do to save money.

Here are a list of factors that insurance companies look for when trying to decide how much to charge you:

  • How old you are. On average, drivers under the age of 25 are more likely to get into an accident and therefore insurance costs more.
  • If you are married. Drivers are more likely to drive safe if they have someone to come home to.
  • Have you had an accident. No matter what age you are, accidents are a “bad mark” to an insurance company.
  • Have you had a DUI or a revoked license. This is a serious offense and you are considered a “high-risk” driver to an insurance company.
  • The zip code in which you live. The safer the neighborhood the better. The less crowded the city, the better. To an insurance company, the more cars out on the road the more likely you are to get into an accident.
  • How big your cars engine is. The larger the engine the more likely the driver will speed and therefore the better chance of them being reckless.

Questions Answered

What is a deductible?

  • A deductible is an agreed upon dollar amount in which you “share the risk” with your insurance company if your vehicle is damaged. For example, if your vehicle is worth $10,000 and your deductible is $500, in the event of a total loss, your insurance company will pay up to $9,500 (after your deductible is paid).

What is an agent?

  • An agent is a person who sells insurance and must be licensed to do so. Our agents are licensed and trained to help you receive the highest discounts.

What is bundling?

  • Bundling is coverage that includes multiple policies such as auto and homeowners insurance that are combined to save the consumer on premium costs. Bundling is a great way to save because insurance companies like to reward loyalty.

What is SR22 insurance?

  • SR22 Insurance policy is a kind of insurance that you need when you have had a DUI. Cheap Insurance can help you attain this sort of policy as well. An SR22 filing is issued by your insurance company to serve as a guarantee to the Department of Motor Vehicles that you have secured the minimum liability coverage required by state law. SR22 coverage is something that is added to your existing auto insurance policy, and your insurance company can then file the form electronically with the Department of Motor Vehicles.

What is my risk assessment?

  •   Every insurance company assesses the potential risk you will cost them. Factors such as age, gender, zip code and driving record come into play when an insurance agency is assessing risk. You could be a high-risk driver which means you will not only need more insurance, but it will cost you more. There are however ways to rectify this. Talk to your agent about what those possibilities are.


You Will Be Glad You Purchased This:

  • Towing and roadside assistance- You may not only need this for a crash, but if you break down. Roadside assistance can save you time and money.Towing and roadside assistance is an invaluable tool that you can use all over the nation. If you are on a road trip or simply on your way to work, breaking down or getting a flat tire, this service is great to obtain through your insurance company.
  • Uninsured Motorist coverage- this will make sure that you are still covered even if someone without insurance hits you. About 20% of all drivers either lack the proper insurance or fail to have it at all. This means that you are at more risk than you might think being out on the road. Driving a car without insurance is a crime, but some people still choose not to have it. Uninsured Motorist coverage will save you in a bind. Get this coverage for little to nothing when you add it to your insurance premium.

Discounts You Should Strive For

Everyone loves saving money. And when you have cheap car insurance or any insurance policy, the premiums can add up. Most households have medical insurance or also known as health insurance. These same households also carry car insurance, homeowners or renters insurance and many times life insurance. There are ways you can save on your insurance by asking a broker about discounts. But you might be surprised how many discounts you could qualify for.

  • Discounts for safety courses taken- taking a safety course can help your premiums go down because it proves that you are a safe driver.
  • Marital discounts
  • Good driver discounts- having a driving record which shows safe driving and responsible skills will only help you when shopping for insurance.
  • Association discounts
  • Education discounts
  • Occupation discounts- Depending on what kind of job you have and how far you need to commute for that job could make a difference in your policy choice and price.

More Discounts

  • Excess vehicle discounts
  • Mileage discounts- Keeping low miles on your vehicle should keep your premiums lower.
  • Multi-car discounts- Not only having multiple cars can help, but the types of cars your family drives could save you.
  • Multi-policy discounts- You may want to consider getting homeowners insurance, motorcycle insurance, car insurance, SR22 insurance and much more from the same insurance company.
  • Age-based discounts: your age could affect your premium. Until you reach about 25 years old, you are considered a risky driver. You may even have a good driving record. Insurance companies consider teen drivers the most at risk to get into an accident.  This makes sense of course, because teens are new to driving. However, when you reach 25 you should see your premiums go down.Living in a low-crime area. If you live in a safe zip code, you will safe. The more crime in your neighborhood, the more likely your car will be broken into. The chances of you being hit and being hit by an uninsured motorist will also be higher.

Contacting An Agent

Now that you are familiar with how car insurance works and how you can save money getting it, you need an agent. You could choose to just go online and get a free quote. You really never have to talk to a representative. However it might be a good idea to find an agent that you trust and talk to them about specifics.

Here is how:

When you fill out an online form, just put in the type of insurance you are looking for. In this case it’s car insurance. Then put in your zip code. Usually you will have to answer a few short questions pertaining to your car and situation. Sort of like what is talked about above, the insurance companies will need to know if you qualify for any discounts. You will have a quote in your e-mail inbox within minutes. This can give you a general idea of how much you will have to spend. But if you really want a specific answer and need to ask any questions you will want to talk to an agent. An insurance broker is someone who can search for the best discounts and find you an insurance company that suits your needs. Not every insurance company will be beneficial to you.


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