Buying car insurance in Philadelphia could be a daunting task for the inexperienced. It’s not something we’re taught in school, and the majority of information regarding the most appropriate policy usually comes from the infamous insurance salesmen. Finding the best deal for your car insurance could easily save you hundreds of dollars every year, and all you have to do is remember to shop around when it comes to renewing your insurance every year. The biggest mistake many people make is to stick with the same insurance company, by frequently comparing your insurance policy with ones provided by other companies, you can make sure you’re always at the lowest rate, and at the same time keep the whole industry’s prices competitive.
What Affects The Price To Insure Your Car?
Using past data, car insurance companies in Philadelphia are able to calculate the estimated risk of different groups of people. The groups at higher risk of having an accident on the roads will naturally be more expensive to insure. The main things affecting the price of your insurance premiums include your age, your gender, where you’re geographically located, your accidents history and past claims.
If you’ve recently passed your driving test, you’ll find that your insurance could be a lot more expensive (as much as several times) compared to older drivers with a clean history. This is why it’s good practice for first time car buyers to check approximately how much insurance is before splashing out on the car. If it is your first time buying car insurance, make sure you give yourself a broader view of the market and ask for free quotes at as many insurance companies as you can. Be aware that the cheapest options may lack some of the cover offered by slightly more expensive options.
Recent introductions of gadgets placed in vehicles can also help insurance companies identify your driving patterns, predict your risk value on the road and potentially lower or raise your insurance premiums. If you think you’re a safe driver, this could be a worthwhile option to take.
Types Of Car Insurance
Generally, most insurance companies offer 2 different types of car insurance:
Fully Comprehensive Insurance
In addition to the cover provided by the third party insurance, fully comprehensive insurance also provides cover for damages to your own vehicle too. So if you have an accident on the road, the insurance would pay out to both the damages to other people’s property you’re liable for, and also the monetary value required to repair or write off your own vehicle.
Fire & Theft Insurance
Fire and theft insurance gives additional cover compared to the third party insurance described below. As the name suggests, This policy also covers you for events where your own vehicle is set on fire, or is stolen.
Third Party Insurance
This is usually the lowest kind of cover, and also the cheapest policy available. In the event of an accident, the insurance company would pay out for damages caused to other people’s property.