15 Things to Know Before Buying Car Insurance in the United States

In the United States, you have to drive with three things: driver's license, vehicle registration , and your car insurance. In the event of a car accident, the amount of compensation and medical costs is frightening, so without car insurance is not equivalent to any protection. And in most states, driving without insurance is illegal.

What should I know before purchasing car insurance? How can I buy profitable or appropriate insurance for myself? Many factors affect auto insurance. If you want to save money, reduce the premium as much as possible and at the same time, you have to be safe. The following points should be known.

There are many elements of insurance, but there are 4 main elements which are the most important:

1. Liability

It is a liability insurance. In particular, if the road accident is the driver's fault, the insurance company will pay the other party’s "victim" for damage, including car and physical loss. This article is required by law.

2. Collision

It is the opposite of the first element, or an improved version. Although it is his fault, the insurance company will also pay for the driver's car and physical losses.

3. Comprehensive

This is part of external losses, such as losses caused by car theft and natural disasters.

4. Uninsured / Under-Insured Motorist

If you have a traffic accident with another person and it is the other party's fault, but the other party is uninsured or the amount of insurance is low and the body is injured, it will be your responsibility to pay for these losses. This project is for the insurance company to help you pay for everyone's medical expenses.

Note: you can choose full insurance, half insurance or certain insurance options. Half insurance only has to buy the Liability section, which is essential. The remaining items can be all inclusive or selected based on personal circumstances.

About premium:

5. Deductible

This is the word most often heard when purchasing auto insurance. This is the amount to be spent, usually between $ 250 and $ 1,000. For example, if your deductible is $ 750 and a traffic accident has occurred, the cost of maintaining the car is $ 3,500. You just have to pay the $ 750 deductible and the remaining $ 2,750 is paid by the insurance company. However, if the amount of auto repairs has to be paid in the deductible, only the excess will be charged to the insurance company. You can choose your own deductible and coverage. Higher deductibles will reduce premiums, and similarly lower deductibles will increase premiums.

6. Vehicle safety assessment

Not all cars have the same premium rate. Each car has its own safety report data. For safe car customers, insurance companies will offer discounts, and cars with below average security ratings will increase the premium. For example, the premium for the 2010 Toyota 4 Runner is very low, since the safety equipment in this car is relatively complete. In contrast, the premiums for the Honda Civic are more expensive, one is its low safety factor and the other is that it is a popular target for car thieves. Before buying a car, you can check here at the National Insurance Crime Bureau which vehicles are stolen in the United States.

7. New car or old car?

In addition to the safety assessment, the performance of the car is also very important. If you want to buy an expensive sports car, insurance is naturally more expensive than ordinary motorhomes, so the type of car to buy is linked to the level of insurance.

8. Driving mileage

Mileage is also the key to the bonus; in fact, it's not unreasonable to think about it. People who drive more often will have more accidents than those who rarely drive. So if you can drive a car with your friends or drive as little as possible, you can not only save energy, but also save a lot of money.

9. Violation

This can be embarrassing for many friends, as an accident will cause an additional stain on your records. Although the penalty will increase the premium, but everyone will make mistakes, regardless, its threat will gradually decrease over time. Therefore, you should always be alert while driving.

10. Age

According to statistics, the probability of accidents for drivers under 25 will be relatively high, so the premium will be relatively high. Especially young single men!

11. Driver's license or Permit?

 You can't wait till you get your driver’s license to buy car and insurance？That’s wrong, you have to wait! Buying insurance with permit cost much more than a driver’s license.

12. Others

Many insurance companies provide great student discounts, such as good GPA transcripts (hard work is not in vain), if your major is tied engineering or science, some insurance companies will also offer discounts that can help you reduce your premiums.

13. Choose the same insurance company

Another way to save premiums is to place home and auto insurance under the same insurance company, as most companies will want customers to choose multiple company services, so they will provide multiple purchases. 'insurance. discount.

14. Insurance company

Here are the top 6 most popular insurance companies in the United States. Just like shopping, different insurance companies have very different premiums, so be sure to shop around when you make a choice.

Allstate

State Farm

AAA auto insurance

Geico

Progressive

At national scale

15. Keep in mind

Finally, let's remember that having a good driving record and good credit in the United States will always bring many benefits. If you can maintain a low mileage and a safe car model, it can help you save a lot of premiums. .