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Car Insurance

The price you pay for car insurance is based on how much risk you present to the insurance company. The risk is what it could potentially costs the insurance company. The insurance company makes an estimate of how much it may need to pay on all claims during your policy period and sets rates accordingly. Factors affecting those risks are age, year make and model of your vehicle, driving records, the type of driving being done, where you live, where you drive, and in some states your credit rating is factored in.

Why have car insurance?

Because it's the law! Each state determines its own coverage requirements but drivers from every state must carry a certain amount of liability coverage. Second, it protects you from financial and legal risks if you are involved in an accident. Many states have fines for drivers who don't provide the necessary coverage. Penalties range from as little as a $100 fine to the suspension of a driver's license, cars registration, fines of $5000, and up to one year in jail.

Ways to reduce the price you pay for auto insurance:

• Establish and maintain a safe driving record.
• Ask for discounts and credits
• Higher deductibles = lower cost
• Cars that have high safety ratings
• Eliminate unnecessary coverages
• Get multiple auto insurance quotes