4. Is there that much of a difference in insurance rates between those living in a big city as opposed to the suburbs or a rural area?
Where a person lives is a major determining factor in how much he or she will pay for auto insurance. “The congested city traffic, narrow streets, and high volume of pedestrians and bicycle riders create a higher frequency of auto accidents and bodily injury compared to the suburbs,” says Kinn, which necessitates higher premiums to cover the increased risk involved in covering urban drivers.
5. Do sports car drivers pay higher premiums because they’re more likely to get ticketed or get into traffic accidents than those owning other types of vehicles
“Statistically, sports cars are involved in more accidents than sedans,” says Griffin, though this isn’t the only factor used to determine how much they’ll cost to insure.
“The owner’s age and driving record will also influence his or her premiums,” he says.
6. Is it cheaper to pay my auto insurance premium on a monthly basis?
Like any business, an insurance company prefers to get their money up front to save on billing costs. “Most insurance companies provide a substantial discount, usually between 5 to 10 percent, for paying your auto policy premium
in full,” says Kinn.
7. Do men pay more for car insurance because they’re more likely to drive recklessly than women?
According to Griffin, the largest difference in premiums among drivers of opposite sexes is among younger, less experienced drivers. “Young men can be more than twice as likely to have an accident as young women of the same age,” he says.
8. What happens if my car is totaled? Am I covered if my car is destroyed in a flood?
A car is “totaled” if the cost to repair it exceeds its current value as determined by industry statistics. While most insurance companies would settle the claim by paying the cash value of the vehicle minus the deductible, Kinn notes that some insurers are now offering endorsements – albeit at a extra cost – that allow an owner to be reimbursed for the value of a one-year-newer car.
And unlike owning a home, you don’t need to take out specific flood insurance on your car, so long as you have comprehensive and collision coverage.
“If you drive into a flooded roadway that would fall under your collision coverage, while if your vehicle were parked and became flooded it would be covered by your comprehensive coverage,” says Kinn.
9. Is a past DUI (driving under the influence) citation going to make trouble for me when it comes to getting auto insurance even if my record is now clean?
Griffin says that depending on the state, a DUI will tarnish a driver’s record for at least 7 to 10 years, but will typically affect the ability to obtain insurance or raise premiums only as long as it’s active. “Once the record becomes ‘clean,’ insurers in some states cannot use a past DUI to charge higher rates.”
10. Will my auto insurance cost more if I buy a luxury-branded car instead of a comparably priced non-luxury model?
Indeed, Kinn says luxury-branded models will usually cost more to insure. “The overall replacement value tends to be greater, and the repair costs are usually more expensive, plus luxury models usually have a greater risk of theft – not just for the vehicle itself but also for the parts,” he says. “Also, many luxury models are rated as performance vehicles, which likewise results in higher premiums.”
