Is Cheap Car Insurance the Right Choice?
“You get what you pay for.” That’s it simple and direct. However, with the economy today the search goes on for cheap insurance rates from a quality insurance company. After researching the internet and applying for the least expensive rate on my 2007 Ford Mustang GT I found rates from $1000.00 to $1600.00 for six months. On the grounds that I was doing research for an article and not actually looking for insurance, I did discover some interesting factors.
Your insurance rate is based on the following:
4. Past driving record
5. Your State’s Guidelines
6. Rent or own
7. Credit history
8. Where you live
Some companies may not request all of this information. But, company rates vary according to the information requested for a quick quote. Once the quick quote catches your attention and you decide to proceed then you are asked a number of questions which may increase your quote. Bodily Injury/Property Damage Liability and Uninsured Motorist Bodily Injury coverages make a dent in the quote. The age of your automobile is a factor also. If your car is 15 years or older, most insurance companies do not cover your car with comprehensive and collision coverage. (I guess they figure if you wreck your old car it’ll be totalled anyway!) Of course, your past driving record is a huge factor. If you are a speed demon and have several speeding tickets under your belt, you may not be approved for any insurance.
You may be able to decrease your car insurance rate if you combine your home insurance, flood insurance, etc. with the same company. Combo packages usually equal lower rates and only one company to deal with.
One factor to consider is the Uninsured Motorist coverage. Due to high unemployment, foreclosures, etc., car insurance is looked upon as an unnecessary expense; so it is cancelled. This is illegal and the driver will ultimately get caught. However, it is unfortunate for you if you are in an accident with this uninsured driver. Your insurance will pay for the damage to your car and ultimately your insurance rates will increase.
In closing keep in mind: when you need the insurance it’s a great thing to have! The best advice I can give is to research every option; ask lots of questions and be informed when you hit that SUBMIT button. Your choices will determine the coverage that is right for you.