Average Car Insurance

Average is hard to define or put figures to because there is no average car, average driver, average family with which you can compare your exact needs. However, there are insurance statistics that can help you choose the best car insurance at the best price for your particular needs. There is no average car insurance policy because there are so many variables. This makes understanding car insurance difficult.

Other things that may confuse the buyer seeking average car insurance is the plethora of fallacies and myths that run rampant among car owners. Let’s look at some of these and sort facts from untruths.

Average Car Insurance

• Fact I: Color of the car does not determine the price of auto insurance. It is generally thought that a red car attracts not only the police but also increases car insurance rates; however, this is not true. The type of car you purchase, whether new or used, may affect the costs but not the color. Car insurance premiums are based on make, model, body type, engine size and the age and mileage on the vehicle. Also. the age of the driver and the driving record and even the credit history of the driver are taken into the equation. The price of the car, repair costs for that type car, its safety record and if it is a hot item for thieves matters. Some offer discounts for certain safety features and theft deterrents. Insurers will want to know your previous accident history, the number of miles you drive annually and also the area in which you live.  These are the common factors used in determining the price of auto insurance.
•  Fact 2: The minimum amount of auto liability insurance required by state law is insufficient to cover your needs. Almost every state requires a driver to purchase a minimum amount of automobile liability coverage. This is probably the most important coverage because it covers the insured’s greatest exposure – liability to others. Liability coverage covers damages for bodily injury or property damage that an insured becomes legally responsible for because of an auto accident. While the state law may only require a 25/50/25 type policy, the insurance industry and consumer groups  advise a minimum of $100,000 per person for bodily injury and $300,000 per accident. With soaring medical costs and the fact that we live in a litigious society, you need to protect yourself from lawsuits and expenses that would devastate your financial security.
• Fact 3: You must purchase comprehensive and collision coverage – which are optional – to cover yourself in the event your car is stolen, damaged by storms or fire or falling trees and many other things out of your control. Both collision and comprehensive coverage must be purchased in order to fully protect your vehicle from all types of damage, including collision and rollovers.  The driver of an older car worth less than $1,000 may not think the benefit is worth the cost. Again, seek advice from your car insurance who has the statistics.
• Fact 4: Contrary to popular thought, the older driver does not necessarily pay more for car insurance. The over 55 group can qualify for a reduction in auto insurance rates if an accident prevention course is completed. A 10% discount may be given by your insurance company. Check to see if your provider offers this. Safety driving courses are available through state agencies and AARP. Check also on minimum miles driven per year and other discounts available to senior citizens. Likewise, military personnel may qualify for discounted auto insurance. Some companies give veterans a discount.
• Fact 5: Personal property in your car is not covered by your car insurance. Sports equipment that is damaged or a stolen laptop or perhaps expensive clothing may be covered through your homeowners insurance policy, but not by your car insurance policy.
• Fact 6: Older cars are targeted by thieves over high end models. In Texas, trucks are the prime target. These stolen vehicles are stripped down by organized crime rings making your car unidentifiable if not located within a short time. Comprehensive insurance would have you covered with replacement cost of the vehicle at the time of loss.
• Fact 7: The prudent car insurance shopper will sort out facts from fallacies or myths. Do not assume anything. Find out what is in the policy and what is not. Protect your and your family’s financial future through a well planned automobile insurance policy that covers your needs.

In view of these facts, the average car insurance that you seek should rather become a customized car insurance that takes into account you, your spouse and your children. Your driving habits, ages, mileage, area and many other things should be considered. Understand what you are paying for and also understand what if any coverage you elect not to carry. Only you can decide, and only if fully advised can you make the best decision. You are not average. You are extraordinary. Find coverage that matches your needs with a strong insurance company and reasonable rates.