You’d think when you finally get your dream car, you can just jump to enjoying your therapeutic evening drives, or picking up your dates, all without any issues. But nope, it’s not that rosy. 

Car owners need to get the right insurance policy with their cars. While it’s not necessary in many countries, it’s important nonetheless. And I agree it’s not the most thrilling part of car ownership. Still, it’s vital for protecting your investment and ensuring peace of mind while you’re on the road. 

If you’re feeling overwhelmed with the sheer number of insurance options available for you to choose from, don’t worry. This article will present factors you should consider before choosing any  affordable auto insurance options . 

5 Factors You Must Consider Before Choosing Any Car Insurance 

Driver Profile

First thing the company will check is you. Who will be in the driver’s seat in this car that’s seeking insurance? How well do we trust them based on their personal characteristics alone?

Insurers will assess factors such as:

  • Age: Everyone’s first insurance was expensive, and that’s because we were either teenagers or young adults when we got our first car. That’s because people in that age group tend to take risks while driving. Teens/young adults have less driving experience and are considered immature compared to a driver in their 50s, so much so that teen drivers pay an average of 302% more than those in their 50s.
  • Credit score: Your credit score will affect your chances of getting a good insurance deal. If you’ve got poor credit (350-500), you’re probably going to pay about $1200 more annually for car insurance compared to those that have excellent credit. Low credit is a risk factor in an insurer’s eyes. 
  • Driving history: speeding tickets, citations, claims all play into your driver’s profile and your likelihood of getting a good deal. If you’ve got no crash records, you will get lower premiums than someone with.

Don’t fret though if you’ve got a terrible profile. Some insurance companies offer programs for you to improve your standing over time. You should know though that enhancing your driver profile will require some effort. But the rewards are so worth it. 

Vehicle Profile

Your kind of vehicle comes into play when deciding whether you need to get car insurance. Some things insurers look at include: 

  • The car’s safety features: A car with multiple safety features like anti-locking brakes, airbags, and stability control will appear attractive to insurers. Others without will be a risk in their eyes. 
  • Make and Model: If you ride something like a Nissan Versa, trust you will get very low premiums. A luxury car like a Lamborghini   on the other hand will attract higher premiums.

Coverage Options

Common advice for new insurance buyers- understand what kind of insurance you’re getting. There’s a lot of options to choose from, but the mayor ones include: 

  • Liability insurance covers the driver’s medical expenses and property damage 
  • Personal injury protection covers your medical expenses after an accident without pointing fingers at whose fault it was. 
  • Collision coverage covers repairs for your car after a collision so you don’t have unexpected costs at your door. 

While some of these are legally required (and choosing only them will seem economical), it may not provide enough protection if you get into an accident. 

So take your time to really consider your options and your personal circumstances.

Marital Status

Marriage definitely comes with its benefits, and one of them is low premiums on insurance. 

If you’re recently married, insurers will see you as more stable and lower-risk. And if you live in a place with multiple policies around a marriage, you can get multi-car discounts.

Though this doesn’t cancel out the other factors we’ve talked about. Good driving records and cars with advanced safety features will really give you all the extra benefits. 

Homeownership

This probably doesn’t concern new, young car owners because no way any regular person is owning a home in this economy. But if you’re one of the lucky few, you should know that your home will make insurers see you as financially stable and responsible, and will make them offer you lower premiums. And you could get a multi-policy discount if you insure your car and home with the same company. 

For non-homeowners (a la me and majority of people out there), there are some companies that offer similar discounts if you’re a long-term renter. So ask before deciding to buy, or from whom. 

Conclusion 

Thorough research on the types of insurance that best suit you, as well as evaluation of your personal and driver’s profile, and possible discounts you may be qualified for are important if you want the best possible deal for your car insurance.