How much does car insurance cost? How much should I be paying for car insurance? This is an age old question that really has no exact answer.
The price of car insurance changes based on many different things. Your past driving record, if you are currently insured, what type of car you drive and many, many other items.
So how much should you be paying each month? Let’s take a look at a couple of things.
1. Shop Around – each car insurance provider will most likely provide you with a different quote for your insurance. The best option is to check with multiple insurance providers or utilize a comparison shopping site. This way you can see what your potential cost is an pick the one that fits your budget the best.
2. Decide what you want – Do you want limited liability insurance? How much of a deductible do you require? Answers to these questions will change what you pay each month. Going into the process knowing what you need will help you easily compare pricing and get a quote that works for you.
3. Know your needs – Are you a great driver? Are you a horrible driver that often gets in accidents while leaving the grocery store parking lot? Past driving record is a huge part of the factors that go into what you pay each month for car insurance. Understanding your past driving history should keep your expectations in line with what you could potentially be charged.
4. Your Car – What car you drive also has a pretty big affect on what you pay for insurance. If you drive a Ferrari, your monthly payment is going to be pretty high. If you happen to drive a 1992 Honda Civic with over 150,000 miles, chances are it will be much cheaper.
In the end you should be paying for the right coverage. Whether this is $20 a month or $250 a month, what matters is that you have the right coverage. Based on the car you drive, where you live and the coverage you need, you can come to an accurate estimate of what you should be paying for car insurance each month. Your best option is to shop around and check for a fair from a quality insurance provider.
One thing you want to make sure you do not fall for is the advertisements that offer ‘savings’. Sure, if you happen to be overpaying for car insurance you may save a few hundred dollars each year but many of the numbers presented by insurance companies are inflated and meant to be used as advertising tactics. Be careful who you get quotes from as it is always safer to go with a reputable insurance company.