If you are new to owning a car and getting car insurance, it's important to understand that an auto insurance agency will ask dozens of questions when offering you a quote. They do this to find out the risks involved with insuring you and your vehicle, and one big factor that will affect your rates is the car you own. Here are several ways the car you own will affect the rates you pay for auto insurance.
Age Matters
According to Affordable Insurance, the age of the car you drive matters in this equation, and you can easily understand this by comparing a brand-new car to a car that is 20 years old. If you have a really old car, it probably is not worth a lot of money, whereas a brand-new car will be worth a lot. If you wrecked a really old car, the insurance company would pay out less money to you for the car. If you wrecked and totaled a brand-new car, the insurance company would have to spend a lot more money on your claim.
The Safety Ratings of the Car Play a Role in This
Insurance companies also check the safety ratings of cars when they offer quotes. When a car has extremely high and good safety ratings, the insurance company is likely to charge less for the car insurance for that car. If a car has very poor safety ratings, the chances of you totaling it and getting injured are higher, which will be reflected in higher car insurance rates.
The Amount and Types of Insurance You Need for the Car
The other main factor that will affect your rates for your car is the types and amount of auto coverage you want and need for the car. If you do not have a loan on your car and can get by with liability-only coverage, you will pay a lot less for your insurance than if you needed to have a policy with full-coverage insurance. Secondly, if you choose to have comprehensive coverage added to your policy, you will pay more than if you skipped this type of coverage.
Having auto insurance on your car is important for protecting yourself and for abiding by the law. If you need car insurance, contact an agency today to ask for a free quote for coverage. When you do this, be prepared to give the agent all the details about your car, including the VIN number.
