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5 Important Facts About Auto Insurance


So you need a new vehicle, great. Who doesn’t love shopping for a new vehicle? Time to get rid of the old Honda and upgrade to something a little bit nicer. You decide to go out and purchase a Cadillac Escalade, perfect, now all you need to do is go insure your vehicle and your good to go. Well, here is were you need to strap on your seat belt and get ready to listen up. There are a few important facts about insurance that you may have not known about and that may already affect you and the vehicle you own or have just purchased.

Insurance Pricing

Insurance companies give you a quote on a variety of different factors. Your driving record and prior tickets and infractions being some of the main factors they look at. But perhaps just as big is the vehicle in which you are going to insure. To put it simple for you, the more expensive the vehicle, the more expensive it will be to insure. This is due to the fact the parts are more expensive to replace, as well as the vehicle itself if it happens to be totaled or damaged. Another key factor in insurance pricing is whether or not the vehicle is a target of common vehicle thefts. The Cadillac Escalade, for example is a very expensive vehicle to insure do to the fact that it happens to be right near the top of the list of the most stolen vehicles In America, being a perennial top 10 stolen car every year since it has been made. So before you choose your vehicle make sure you have an idea of what you will be paying for insurance monthly as well.

Insurance Is Required By Law

Some people seem to think that it is not mandatory to get insurance for their vehicle, that if they hit someone they can just pay the bill themselves and move on and nothing happens. Wrong, different states have different requirements but almost every state requires some type of proof of insurance. Liability is the minimum amount of coverage you will need, but you will need to check with your insurance agency or who you have purchased the vehicle(if you are financing) from to see what is required by law for your state.

You Need To Get Multiple Quotes

It is very important that instead of getting just one insurance quote, that you go out and get multiple quotes from different companies. Different companies offer different coverages and different pricing depending on your vehicle and driving history. Some agencies also take credit scores, how often you drive, and military work history into account. So before you think you are getting a great deal on a quote from the first place you check out, make sure you at least try a few others to see if they offer you a better deal.

Insurance Does Not Follow The Driver

Many people think that if you are insured, you are covered in all vehicles you drive. This couldn’t be further from the truth. Different companies have different policies. Some companies do have policies which you can be covered in more then just your primary vehicle but you would need to speak to them about it. If your friend tries to drive your car and then tells you they have insurance and not to worry about it, don’t buy into it. If something happens and they crash your car, you most likely will be at fault.

Payment Plans Cost More

This is a key way to save money on car insurance. I have learned this first hand. Until about two years ago I was paying monthly on my car insurance and it was costing quite a bit of money over a 12 month time period. I decided to talk to my insurance agent about how to lower my rate. She explained the easiest way was paying a minimum of 6 months up front. Now, not many people have 500-1000 dollars to just spend in one days time on car insurance, but it is important to think it over. The savings can be substantial.

In the end, all these factors are important when deciding on which vehicle to buy, and also which insurance company to choose. Never jump the gun and choose the first quote you see, remember there are hundreds of companies out there and to give them all a shot at giving you a quote. You may find that one companies offer is half as cheap as the next’s, that is just how the insurance world works. Do your research, find out what you can afford, what you need, and what is required by law, give yourself a few options, then choose whats best for you and you should be on the road in no time.

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Colin Quinn is a content creator for Central Florida Insurance Agency and specializes in car insurance, car accidents and other automotive related subjects.

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