Your Financial Standing
If you own a car, it’s automatic that you need a car insurance policy. However, the insurance company and policy that you choose will highly depend on your financial situation. For example, if you own an older car model, you can choose a policy with a higher deductible and a lower premium.
On the other hand, if you have a newer car model and your income is higher, you can choose a policy with a lower deductible and a higher monthly premium. Some insurance companies also look at your annual income before they accept your application.
How Car Insurance Rates Are Calculated
Insurance companies use different sets of algorithms to come up with the rate of your insurance policy. There are two major factors that can affect your rate, underwriting and your rating. The risks will be assessed when companies underwrite your insurance policy via a risk-rating system. This system helps the company determine the load that they can expect if you ever get involved in a car accident.
Remember, claim frequency is the highest risk that this system can assess. This means that the more claims you file, depending on the value of the claim, the higher your premiums will be.
Consider Gap Coverage
If you are still financing your car, you need to consider gap coverage. This is important in the event of an accident where your car gets wrecked. Generally, insurance companies will pay for your car’s current market price which can be lower than what you have to cover to pay the financing company. Gap coverage protects you from this by paying the money that you still owe. This coverage only adds a small amount to your premium but is totally worth the peace of mind.
There is no telling when a road accident will occur and whether or not you will be involved in it. It’s important to protect yourself and your investment on your car by getting an auto insurance. Get the best insurance company to take care of your needs.
We at Western Pacific provide expert assistance to our clients in choosing the best deal within their budget. We are always ready to help and give our services. Feel free to contact us at (702) 932-3105. Get your free quote today by CLICKING HERE.