All You Need to Know About Getting a Car Insurance

Getting your first car or your first car in a new country can be an exciting time. The freedom of the open road is calling. You might be looking for every excuse in the book to hop in the driver’s seat and go somewhere. You could walk to the grocery store, but you’ll drive. You don’t need to go back to work to grab your sunglasses—you’ll be able to get them tomorrow, but what the heck, you want to feel the wheel in your hands.

First of all, congratulations! Being able to move around independent of other people’s schedules and needs is a beautiful step towards self-sufficiency. You should be proud that you’ve got these things in order. Of course, once the celebration settles, you’re probably going to need to learn a little bit about car insurance and get a policy for yourself.

Car insurance can seem daunting at first, but it is a necessary and important part of having a vehicle and driving yourself around. After getting car insurance, you may also want to know some hacks to clean any dirt or dust from your car. The following will break down all the things you need to keep in mind when you’re searching for car insurance.

You Don’t Have Control Over Everything

Before we begin, we should address the elephant in the room. Unfortunately, car insurance is one of the few industries where decisions can be made based on your age, gender, job, and several other factors. There is wiggle room to improve your insurance rates. For example, you can take a driver’s ed course, which often results in lower driving insurance rates. There are other things, like your age and gender you have no control over. And there are also factors that you can influence, but you wouldn’t want to just improve your insurance rates. For example, many people are offered lower insurance rates if they’re married, but this alone isn’t a good enough reason to propose to someone.

Focus On The Factors You Can Influence

It can be easy to get disheartened when you realize several aspects of your being are making things more expensive. Try to let go of these frustrations sooner rather than later as, for the moment, there is not much that can be done about them. Focus on the things that you can affect. Things like keeping a clean driving record can make a big difference in your rates.

What Is Car Insurance?

Car insurance is a system whereby you pay a monthly fee to your insurance company and if there is a car accident or damage inflicted or received while driving, the insurance company will pay for the cost of lost work, car repairs, or legal fees. Of course, it gets more complicated than that when you learn that there are a wide variety of car insurance policies available to you, for different prices. It is important to note, however, that in Canada, a basic level of car insurance is required to legally drive a vehicle. Beyond the basic legal requirements for auto insurance, there are many bigger packages you might want to consider depending on you and how, where, and why you drive.

How To Choose An Auto Insurance Policy

When examining different auto insurance packages, it is always recommended to read the coverage policy in full and ask questions if there are any terms or phrases you do not understand. Beyond this, do your research on the top companies and the rates they offer. You might be surprised to find out how much money you can save by shopping around for car insurance. Not all providers calculate rates the same way.

Factors Affecting Car Insurance Rates

The rate of your car insurance is determined by a variety of factors including your:

Driving record – your driving record is an important and significant factor to consider when determining the rate of your car insurance. If you are a good driver and has no history of accidents, tickets, or other driving violations, then you may be advised to pay only a minimum amount of insurance policy. 

Occupation – higher rates are imposed for those drivers whose jobs are considered higher risks such as commercial truck drivers or delivery drivers. 

Location – another thing to consider your insurance’ rate is the location of your home. If the area where you live is with high crime or accident rates, then you might be charge with higher premiums. 

Type of Car– sports cars or luxury cars tend to be charged with higher rates since they cost more when repairing them. 

Gender and Age – younger drivers, specifically male drivers tend to be statistically get involved in car accidents, therefore they are charged more for car insurances.

Common Types of Car Insurance

It is important that you know exactly the type of insurance the company you have applied for offers. Common types of car insurance are liability insurance which is useful when the driver happened to be at fault during an accident; collision insurance which covers damage to the vehicle; personal injury insurance which covers medical expenses and other related costs if the driver himself and his passengers are injured in a car accident, regardless of whose fault it was; lastly is the comprehensive insurance which covers damages to vehicles other than collision such as theft, fire, vandalism, and other damages caused by natural disaster. 

A Coronavirus-Related Side Note

The entire world has been undergoing an unusual time as of late, and people are fairly preoccupied with what is going on around them. Many have not thought about the repercussions of what is going on in regards to their car insurance rates. One big factor in determining your insurance rate is how often you drive. If you’ve suddenly found yourself working from home or attending school from home, and you previously drove to your workplace or place of education, it might be worth reaching out to your auto insurance provider. You might be entitled to less expensive rates without even knowing about it.

With the above tips in mind, you’re well on your way to making an educated and well-researched decision regarding your auto insurance. As with any legal decision, make sure that you read the entire policy before you agree to it. And as always, seek out advice or guidance if aspects of the process are not clear.