There’s a lot that goes into choosing an auto insurance policy. In all states, in order to drive a car, a driver must carry liability coverage for damages he or she is responsible for; in some states, the driver also must carry liability (uninsured motorists) coverage for an accident that the other driver is responsible for. And in some states, no-fault coverage must be carried to pay for medical and related expenses for that driver, and his or her passengers, which were caused by injuries from a car accident, regardless of fault/
What a driver is responsible for
It’s important to know that anyone living in Orange County, California, who doesn’t have car insurance, risks paying the full cost of:
Medical costs due to injury
Repairing or replacing a car that is damaged or stolen
Damage or injury from an auto accident with an uninsured driver
Damage to an owned vehicle when it’s parked at home or in a public place
So, how can a person tell what amount of coverage is best? Considering one’s driving profile is a good place to start:
1. What kind of car is currently owned? Coverage on the vehicle depends on its value. The less expensive the car, generally the lower the insurance premium.
2. How much driving is done daily, weekly, yearly? Drivers who use their car for business and long-distance commuting normally pay more than those who drive less.
3. Age, gender, and marital status? Statistics show accident rates are impacted by a driver’s age, gender, and marital status. If there are multiple drivers in the household, that can also affect insurance prices. Parents can lower risk by keeping teens safer on the road.
Other factors many insurance companies consider
Where a person lives can affect their rates? Location, whether living in Garden Grove or Newport Beach ,is factored into the cost of car insurance.
What about driving record? Drivers with a history of accidents or chargeable motor vehicle violations (e.g. speeding ticket, reckless driving) generally pay more than those who are accident-free for several years.
What is the driver’s credit history? Many insurance companies consider credit history when determining an individual’s rate.
The bottom line is that there are many factors that determine policy rates, some which are out of a person’s control. The best solution is to speak to brokers or agents and get more than one quote. Look into available discounts (good driver, multiple vehicles, etc.) to determine who can provide the best coverage at the best possible price.