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What Affects the Cost of Car Insurance?


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Vehicle Factors

Car insurance companies collect information on your vehicle to determine how much you need to pay for insurance. Many times the information is pulled from the VIN number. Other times the information is provided directly by you.

Year: The year of your vehicle does affect your insurance rate. Newer vehicles can sometimes receive a new car discount depending on your car insurance carrier.

Make: What car company manufactures your car can also affect the cost of your car insurance. A lot of times the make signals the value of a vehicle. Is it a foreign luxury car or an American made minivan? Often times a foreign car costs more to insure because the parts can be harder to get and less body shops may work on them.

Model: SE, SEL, GT, are all different versions of the same model. The fancier your vehicle typically the more expensive it is to insure. The base model four door is often the cheapest way to go not only when purchasing the vehicle but also when you go to purchase insurance.

Vehicle Safety Features: Insurance companies absolutely love air bags. They are proven to protect the driver and passengers. PLPD only coverage on an old vehicle with no air bags can be quite a bit more expensive than PLPD on a vehicle with dual airbags. The medical costs of a vehicle corresponds to the overall safety of your vehicle.

Car Alarm: Car alarm companies want to make it seem like the savings on your insurance will cover the cost of the alarm, however it is not likely. Nearly every car insurance company does offer a discount for an alarm, if you select comprehensive coverage on your policy. Comprehensive covers stolen cars, so the alarm discount is only applied to the cost of comprehensive coverage. The savings is often minimal, but it depends on where you live and the value of your vehicle. At the same time, every little bit helps when it comes to the cost of insurance.

Coverage Purchased: It is obvious the more coverage you want the more your car insurance will cost. Determining what coverage you want and what coverage you need is important. If you are struggling with deciding on the right coverage, seek the advice of your agent.

Number of Vehicles You Insure: Insuring more than one vehicle on your policy with liability coverage with evoke the multi-car discount. The discount will apply to each vehicle but it does not increase as you add more vehicle to the policy.

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