Finding Better Insurance PlansFinding Better Insurance Plans

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Finding Better Insurance Plans

After I switched jobs, I knew I would probably be faced with choosing a new insurance policy. I was nervous about the transition, but I knew it had to be better than the plan I had been using at my old job. I started going through the options with the human resources person, and it took me a long time to understand the different options. After a thorough evaluation, I opted for a health savings account, which let me keep a large percentage of what I would normally be paying in premiums every single month. Check out this blog for more information about health insurance plans.

Shopping For A New Car? 5 Car-Based Factors That Will Impact Your Car Insurance Rate

When you are shopping for a new vehicle, it is essential to consider what the car insurance will cost you. The car you drive is going to have a big impact on what you are charged for insurance. There are a few particular factors that insurance companies look at that impact the insurance rates for a specific vehicle.

1. The Value of the Car

The first thing the insurance company will look at is the value of the car. The car's value is usually a good indicator of what it will cost your insurance provider to repair or replace your vehicle. A vehicle that is worth $30,000 is going to cost your insurance provider more to replace if it is totaled in an accident than a vehicle that is worth $5,000 and will be reflected in your insurance costs.

2. Vehicle Age

The age of the vehicle impacts insurance costs in a few different ways. Generally, as a car gets older, it becomes less expensive to provide insurance because the value of the vehicle decreases. With an older car, if it gets into an accident, your insurance company only has to cover the car's replacement value, making it easier to total an older car.

Simultaneously, older vehicles often lack the safety features that newer vehicles have, which can increase your insurance costs.

3. Repair Costs

Next, the insurance company will consider both the vehicle's cost and the general repair costs should your vehicle get into an accident. Some vehicles have more affordable repair parts and costs than other vehicles, which can help to lower one's insurance policy. 

4. Vehicle Performance

Your insurance provider is going to consider the car's overall ability to perform. Generally, cars that can reach higher speeds faster are seen as a greater risk, driving up insurance costs. That is why a sports model of a vehicle will have a higher insurance cost than a base model.

5. Vehicle Security

Finally, your insurance company is going to consider the security rating of the car. There is a standard letter system for rating the security features of a vehicle. E is the highest security rating a vehicle can get, and an A is an acceptable rating. The works ratings are a D and a U, which means the car doesn't meet minimum security requirements or is incredibly behind standard security requirements.

Of course, personal factors, such as where you live and your driving record, will impact your insurance rates as well. When looking to buy a new vehicle, it is important to get a quote from your insurance company to ensure you can afford the insurance on the vehicle.

Contact a local insurance provider to learn more about available auto insurance policies.