Car insurance is necessary to protect yourself, your passengers, and the other people you share the roads with. While rates may vary depending on your location and driving history, it’s important to know what you need to stay safe on the road. Use this guide to help you understand auto insurance and how it can benefit you.

The Essential Guide to Car Insurance: How to Find the Right Policy - insurance, credit score, car

What Car Insurance Do You Need?

Before you begin searching for car insurance, it’s essential to know what type of coverage you need first so that you’re not paying for more than what you need. It could be tempting to save money on insurance by choosing a low deductible, but this can be dangerous if something happens and you’re stuck with a huge bill that’s beyond your means.

  • Liability: the minimum coverage. This covers you for any accident you cause or damage to other people’s property.
  • Collision: protects your car from damage due to accidents that are your fault.
  • Comprehensive: covers everything not related to an accident, such as theft and weather damage.

These coverages also come with a deductible, which is the amount you would have to pay out of pocket before they take over. The higher your deductible, the lower your insurance rate will be. You can learn more about the different levels of coverage and what you need by looking at The Hartford auto insurance.

Choosing A Vehicle That Won’t Cause Huge Premiums

Many people choose the cheapest car they can find to save money on insurance. However, this isn’t always possible because the type of vehicle you drive could cause your premiums to skyrocket. For example, sports cars, motorcycles, or trucks may increase your premiums. But if you drive a sedan or an SUV, you’ll likely see a decrease in your premium.

If you want to get the right rate for your vehicle, it’s crucial to think about what type of car you have, how often you use it, and how much time you spend on the road each week. You can take steps to limit your mileage, like planning out errands beforehand so that you don’t need to go out as often. Even small reductions in mileage can make a significant difference when it comes to auto insurance rates.

How Your Credit Rating Impacts Your Insurance

Your credit score can impact your insurance rates, so taking steps to improve your credit before you apply for car insurance is a good idea. If you have poor credit, you’ll likely be offered a higher rate and may not be eligible for specific discounts. One way to improve your credit is by checking your report with a major reporting agency like Experian.

Experian offers free access to all three of the reports under one account. Use the report to see how you can improve your credit score, which will not only lead to cheaper car insurance but could make getting other essentials more accessible too, such as renting an apartment.