Everyone who owns and operates a car in the United States is required to pay for at least a minimum amount of liability insurance on their vehicle. Despite this, astonishingly few individuals truly understand what it is they’re paying for. Whether knowing the difference between comprehensive and collision coverage or understanding why your rates cost what they do, most people have plenty to learn when it comes to car insurance. The more you understand about car insurance, the more easily you can make informed decisions that will affect your policy and help you to save money on car insurance.
While facts and figures might be confusing, images truly can speak louder than words. Here are four eye-opening infographics about car insurance:
While most people know that car insurance is a legal requirement, a each year people miss a valuable opportunity to save money on their taxes by claiming car insurance for business purposes. If you are able to claim gas as a business deduction on your tax return, you can absolutely claim a portion of your insurance costs as well. Also, when you purchase coverage for your homeowners, renters, or auto insurance policy, be sure to ask about coverage for your personal possessions; every company will handle this differently, and there may be several options available for any given policy.
Most people are shocked to discover just how many factors are involved in setting insurance rates. While some factors, like driving history, can be expected, you may not have realized just how much of your insurance is determined by factors outside of your control. Luckily, a good driving record will counteract your gender, age, or bad credit. If your insurance is still too high, you may be able to take advantage of discounts by bundling your home and car insurance through the same company, or enroll in a pay-as-you-go policy that bases its rates on your individual driving habits and daily mileage.
You might know that young drivers pay more in insurance premiums than experienced drivers, but do you know how much more? Here’s a detailed breakdown of how insurance rates differ among different age groups, along with the statistics behind the rates. Also, this graphic provides a quick over-view of what states provide the most and least expensive policies. As a rule, populous states will have higher rates than rural areas due to the claim volume: High populations mean more drivers to get into accidents, and a higher incidence of accidents on crowded city streets.
Ever wondered how the major insurance companies stack up? The company with the highest market share isn’t necessarily the one with the largest profit. When wondering why some car insurance companies can afford to offer lower rates, it’s important to remember that some companies have many more employees to pay than others. Insurance companies with fewer employees may be able to offer lower rates, but they may not provide the same quality of customer service.
Car insurance can be complicated to understand, but it doesn’t have to be an impossible mystery.
George Stanzan is an avid financial and insurance pioneer who writes articles for GetInsuranceQuotes where the theme is to help users find better auto insurance rates