5 Fun Car Insurance Facts That May Influence Your Next Purchase

Car insurance enables you to attain peace of mind knowing that even if the streets are not a very safe place, you are protected against some of the most common risk factors that could impact your health, wellbeing and financial stability. Taking into consideration the fact that different policies come with different benefits and different price tags, it goes without saying that identifying the most adequate type of coverage for you can be quite a hassle. To make an inspired decision when it comes to purchasing insurance, make sure you go for a policy that addresses all your need and matches your financial possibilities.

When in doubt, just rely on Insurance Quote Depot to compare car insurance rates by zip code and spot the hottest deals that actually give you the chance to save more than a couple of dollars in the long run. Clearly, if you are a first-time buyer, there are many things that you don’t know about auto coverage. Below you will find a list of the most surprising car insurance facts that will most likely help you acknowledge the importance of an excellent policy.

1)      You Can Invest Your Money in Insurance Policies Especially Designed for Women

Women are given the chance to spend less money on car insurance because they are considered prudent drivers who are less likely to cause traffic accidents. According to a study introduced by the National Department of Transportation, male drivers were responsible for up to 18 million more collisions than female drivers between 2000 and 2009. Men, especially young ones, are charged higher rates because they tend to be reckless, less focused and more aggressive behind the wheel.

On the other hand, women are known for their defensive, responsible driving style. Costs aren’t the only noticeable difference between insurance policies offered to male and female drivers. Did you know that several carriers offer women the opportunity to profit from personalized policies designed to respond to their unique demands and concerns? Such policies include a highly beneficial mix of elements, like for instance roadside assistance, coverage for handbags that could be stolen from the car and several other attractive perks that capture the attention of female drivers.

2)      If You Pay Your Insurance Premiums on a Monthly Basis You Will End up Spending More Money on Your Coverage

When it comes to buying insurance, it is always recommended to make a lump sum payment and get it over with. Of course, you may try to put all your monthly expenses on paper to convince yourself that you couldn’t possibly afford to make a one-time payment. Nonetheless, keep in mind that monthly payments won’t help you put some money aside for a rainy day. On the contrary, insurance companies would raise your premiums if you were to pay month to month, since you would be included in a higher-risk category.

3)      Shopping Around Is Not the Best Option at Hand for People with Poor Credit

If you are one of the many drivers with poor credit who are interested in purchasing auto insurance, you should know that experts in this field do not advise you to shop around. In this particular situation, the winning strategy would be to create a long-lasting relationship with your current insurer to establish a spotless payment history. Loyalty is rewarded in this sector; therefore, a fruitful long-term collaboration with a particular insurance company should open the doors to significant discounts.

4)      A Lower Deductible Will Inevitably Lead to a Bigger Premium

One thing’s certain: insurance companies will always do everything in their power to cover their backs in any context. This usually means that they have to implement different strategies to manage higher-risk categories, comprising people who are more likely to cause an accident (young male drivers, drivers who live in overcrowded urban areas and so on), individuals who opt for a policy with a low deductible and also those beneficiaries who pay for car insurance on a monthly basis.

A low deductible means that the driver would put a small amount of money on the table in the event of an accident and the insurer would have to cover the difference. Obviously, this does not sound like a very advantageous deal for the insurance provider. This is precisely why insurers have paired low deductibles with higher premiums. Experts recommend drivers to go for a policy with a big deductible, especially if they have a lot of faith in their driving skills. This strategy would enable them to save up to 40% on car insurance on an annual basis.

5)      Texas Reports the Most Severe Hail Storm Damages Evaluated at More Than $900 Million Per Year

Texas is the American state that is constantly impacted by hail storms triggering considerable losses estimated at $924 million on an annual basis. This number includes the costs of car repairs. To protect yourself from this threat and several other major risk factors that are not associated with traffic accidents (fire, floods, tornadoes, hurricanes, acts of vandalism, theft), it is recommended to spend some money on a comprehensive policy that would give you the chance to keep these common risks at bay. Comprehensive coverage could be required by your leaseholder or by your lender. If you are the sole owner of your vehicle, decide whether or not you actually require comprehensive insurance by determining the current value of your car. Would it be worth it to pay bigger premiums just to cover a potential prejudice? Or would it be easier for you to spend less money on premiums, live without comprehensive insurance and take money out of your own pockets to repair or replace your car?

The choice is yours. Either way, don’t forget to compare car insurance rates by zip code to spot the most attractive deals. Once you’ve figured out what kind of policy would work best for you, talk to a competent insurer to make sure that you’re on the right path to affordable, truly convenient auto coverage.