Risks, Factors, and Coverage of Car Insurance (How You Get Cheap Car Insurance)

There are thousands of auto insurance policies, hundreds of companies, and tons of variables, how is someone supposed to find the best car insurance for them? First, the driver needs to decide whether they want the state minimum requirement for auto insurance “cheapest auto insurance” or “real coverage.” There are some simple tricks to ensure you get cheap car insurance regardless of coverage and there are some basic things you should know before you buy auto insurance.

Elements that affect Monthly Premiums

· Age

· Education

· Marital Status

· States

· Type of Car

· Coverage

· Deductible

Age: Anyone under the age of 25 is considered a high-risk client and will have to pay more for auto insurance. Inexperienced drivers get into more accidents than older and more experienced drivers.

Education: Car insurance companies have made a connection between higher education (College) and fewer car accidents.

Marital Status: People with “families” tend to be safer on the road and get into fewer accidents.

State: Some states have much more expensive insurance policies than others. For example, since drivers in Florida put a lot more mileage on their cars due to the warm weather all year round causing more accidents it is a very expensive state when it comes to auto insurance.

Type of Car: Auto insurance companies know which cars are more likely to break down and be robbed.


The amount of coverage is directly linked to the monthly rate. The more coverage you want the more you will have to pay. There are several different types of auto insurance coverage, and every insurance policy is different for how much of each type of coverage it includes. Sometimes going with cheap car insurance can be an expensive decision. If you get into an accident and bought really “cheap auto insurance” and the damage is not covered by your insurance policy than you will have to pay for all the damage, which could cost you hundreds of thousands of dollars depending on the accident.

Different types of Coverage

Bodily Injury Liability

(Bodily Injury liability) insurance covers damages that affect the other driver and passengers if the insurance holder caused the accident. This really helps lower the chances the other person will take you to court to get compensation.

Medical Injury Insurance

This is the coverage that actually covers wounds and damages of the insured vehicle’s owners and passengers, and most insurance policies have extremely small coverage and compensation in this field.

Property Injury Liability

This type of coverage will cover damages that the car insurance holder causes to someone’s property aka house, building, or any other structure.

Collision Insurance

This coverage pays for damage to your car when you get into a collision with another car. Most cheap car insurance policies have the majority of their coverage in this area.

Comprehensive Insurance

Comprehensive insurance coverage is designed to cover things like broken windows and very minor repairs to the car.

Remember most really cheap car insurance policies have little to no coverage in most of these different areas. If you actually want to be protected you might have to either pay a higher deductible or opt for a higher monthly rate. Car insurance deductible is a standard “deposit” that you pay for when you buy car insurance it ranges from $100-2,000 this helps the insurance company pay off any damages that occur. The more you pay in your deductible the more money the auto insurance company has and the lower monthly rate you will have to pay. Some drivers choose to pay the highest deductible to lower the monthly rate and then just put the money towards better coverage.

There are a lot of things to consider, but these are the basics and major factors that affect the overall price of car insurance. With over 6 million people getting into accidents every year just in the United States you might want to consider paying more for car insurance.

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