Car Insurance Tip 3

Who You Are Affects Your Premium

Factors that you can least control may have the greatest impact on your insurance costs. Your age, gender, and driving record are key factors that affect your insurance premium.

Single males under the age of 25 pay the highest rates. Statistics show they are involved in the most accidents, so insurance companies charge young men higher premiums than women of the same age. Married men, who statistically have fewer accidents, pay less than single men. A handful of states do not allow rates based on sex or age, but that prohibition has tended to result in higher rates for women, not lower rates for men.

Car Insurance Know Your Coverage Types

What is your car insurance actually insuring?

Although you're buying a single insurance policy covering a specific vehicle, a number of components make up the final cost:
Bodily injury liability: Covers injury and death claims against you, and legal costs, if your car injures or kills someone
Property damage liability: Covers claims for property that your car damages in an accident.
Because liability coverage protects the other party, it is required in all but three states.
Medical payments: Pays for injuries to yourself and to occupants of your car.