Whether you\u2019re getting your first car or switching to your fifth insurance provider, there are certain questions you need answered before signing a car insurance policy.<\/p>\n\n\n\n
Consider how much you drive. Do you often take road trips? Do you only use the vehicle to commute to and from work? The more you use your vehicle, the more coverage you may need on your car insurance policy.<\/p>\n\n\n\n
Newer vehicles generally cost more to insure. This is because new vehicles are typically insured with full coverage car insurance. Older vehicles that are paid off can sometimes get by with minimum liability coverages as required by the state. When looking for car insurance, it is important to insure your vehicle for as much as it is worth in case of a total loss. If you have an older, paid off vehicle, however, sometimes it is cheaper to insure with minimum liability only. If the cost of insuring the vehicle is more than the cost it would be to replace it, you may want to skim back on unnecessary coverage.<\/p>\n\n\n\n
Usually you are the main insured on your car insurance policy, but this doesn\u2019t mean someone else won\u2019t occasionally borrow your car. If your child or a roommate is going to be sharing the vehicle with you, you will want to name them on the policy to make sure they\u2019re covered. If you are the primary driver, you may not need to list someone else on your policy for them to be covered, such as if they only borrow your vehicle once.<\/p>\n\n\n\n
Keep in mind that adding people to your policy can affect the cost of your car insurance. The driving record and credit score of another driver on your policy can raise or lower your monthly car insurance premiums. In some cases, insurance providers may even require you to list a driver as an excluded driver. This primarily occurs when you share a household with someone who is considered a \u201chigh-risk\u201d driver, such as a driver who has a history of accidents and DUIs. If someone is listed as an excluded driver on your policy and you allow them to operate the vehicle, they will not be covered in case of an accident.<\/p>\n\n\n\n
Not all car insurance policies are created equal. They should, however, all have the minimum liability coverage required by the state. This not only dictates the type of coverage you have to carry, but the amount, as well.<\/p>\n\n\n\n