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What to Consider When Buying Car Insurance

19 May by 5280 Insurance

Car insurance is one of the most important things that you can buy as a driver; especially if you want to avoid hefty fines and add to the cost of your motor insurance policy. More importantly, it offers protection if you have an accident and is legally required by law in most states.  

The type of coverage you need will vary depending on the type of vehicle you drive, where you live, the amount of money you have saved and are willing to invest, and the amount of financial risk you wish to take. 

With that in mind, what do you need to consider when buying car insurance that’s right for you?

Important Factors to Know about When Buying an Auto Insurance

1. Driving Record and History 

Your driving record and history are going to play a large part in determining which kind of coverage you need to purchase and from which insurance company. If you have a clean driving record, then you will likely get a cheaper policy than someone with a poor driving history. 

The more tickets, accidents, and speeding tickets you have, the more money you’ll have to pay for your auto insurance premium. But, if you have multiple tickets, your insurance company may not even want to insure you; which is why it’s always a good idea to know the exact requirements of your state before even applying for coverage.

2. Value of Your Vehicle

The value of your vehicle is also going to be a major part of determining what kind of auto insurance coverage you need to buy. The more your vehicle is worth, the more coverage you will need as a driver.

3. Credit Score

Your credit score is also a big factor in determining what insurance company you will choose to purchase your coverage from. Because your credit score is a good indication of your ability to pay your bills, the insurance company will want to make sure that you can pay for your coverage in the event of an accident. 

4. Coverage and Policy Limits

What coverage you need to purchase will also depend a lot on how much you are willing to pay for it. 

The standard policy limits of liability protection will cover the other drivers in your car and their passengers, as well as people you may injure on the road. But, you can always pay a little more for additional coverage; such as collision and comprehensive coverages.

In addition to policy limits, you will want to pay close attention to the deductible amount of your policy. The deductible is the amount of money you will pay out-of-pocket in the event of an accident. 

The higher the deductible amount, the lower your premium. But, if you are a safe driver with a good driving record and history, it might be a good idea to have a lower deductible.

The Bottom Line: The Importance of Car Insurance

Whether or not you’ve experienced a car accident, having car insurance is a critical part of being a responsible driver. Without it, you would be on the hook for paying for the damage yourself. But, if you have a good auto insurance policy, then you can benefit from the coverage and protection that it offers.

Are You Looking for the Best Insurance Companies in Colorado?

Here at 5280 Insurance, we strive to find the best insurance policy for you and your family. We hope you found this article helpful and that you have a better understanding of the importance of auto insurance. Visit our website to get car insurance quotes in Colorado!

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