All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as approval of coverage, premiums, commissions and charges) and policy obligations are the sole responsibility of the underwriting insurer. A passionate personal finance advocate, Sarah's writing has appeared on the pages of many of the leading web publications in the personal finance and insurance industry. If you drive an old vehicle and the cost of repairing it exceeds its value, you can dispense with comprehensive and collision coverage to reduce your car insurance premiums. Often, city dwellers pay more for car insurance because of the higher traffic density and the greater likelihood of accidents, as opposed to sparsely populated rural areas.
Most insurance experts agree that it pays to hire higher levels of liability, if you can afford it, to offer a higher level of financial protection in the event of an accident. However, having more than the minimum coverage “tends to make less sense if the car is old, well used and fully paid for, because almost any accident or major damage would result in a total loss in these cases,” says Ben Michael, founder of Michael & Associates in Texas. How much you'll spend on car insurance depends on several factors, such as your driving history, age, gender, location, credit rating, and insurance company. Even if your lender or landlord doesn't require full coverage insurance, sometimes it's a good idea to have more coverage.
The rate of theft, vandalism, and accidents in your area can help insurers calculate the likelihood of you filing a claim, which can increase insurance costs. Rates are likely to vary even within each city, but knowing your city's average can help you be more confident when buying car insurance. The city you live in and its rates of accidents, vandalism, theft, and more affect your car insurance premiums. Because insurers look at your credit score, having an excellent credit history can help you save money on your car insurance.
Every driver is likely to encounter a variety of premium costs at different insurance companies, which means that comparing prices can pay off.