Now that you know about the different standard coverage options, you can start to figure out what exactly you need to adequately cover your family. The trick is finding a policy that fits into your monthly budget. It's important to know that rates for auto insurance policies can vary widely based on factors concerning your family's driving history. Fewer incidents typically yield a lower premium on policies, but it's always worth it to shop around.
One factor that will immediately influence your monthly premium is the size of your deductable, which is your out of pocket expense for any auto incident. If you choose the highest deductible you can afford, this will lower your monthly insurance premium. Teen drivers will inevitably cost you more because this age group has the highest accident rate. But if they have a grade point average of B or better, or attend a college more than 100 miles from home and don't have a car there, you'll get a break.
The types of cars your family drives also impacts your premium. Sports cars and luxury cars inevitably will cost you more, while economy cars are considered to be safer and less expensive to fix and will be cheaper to insure. Cars with safety equipment such as air bags and anti-lock brakes will also get you a bit of a deduction. And don't forget to ask your insurance agent about grouping your home, auto and personal liability policies. This may get you a break on all of your insurance premiums.
- California Department of Motor Vehicles "Teenage Driver Crash Statistics." Dmv.ca.gov. Nov. 27, 2011. http://dmv.ca.gov/teenweb/more_btn6/traffic/traffic.htm
- Consumer Reports. "A guide to car insurance." Consumereports.org. Nov. 27, 2011. http://www.consumerreports.org/cro/cars/car-buying-advice/guide-to-new-car-buying/after-the-sale/guide-to-insurance/index.htm
- Karimi, Sabah. "How to Get Cheap Auto Insurance for Young Drivers." Wisebread.com. Nov. 27, 2011. http://www.wisebread.com/how-to-get-cheap-auto-insurance-for-young-drivers