ROCK HILL, SOUTH CAROLINA - The road to car ownership is a long, often expensive, and confusing path. It involves deductibles, risk management, premiums and insurance policies which can be challenging when you don’t know much about car insurance or finances.
Cara Peters, professor of marketing at Winthrop University, provided MoneyGeek, an informative website that seeks to simplify finances, with important tips about car insurance to help those unfamiliar with the process find the best policy for them.
“There are several factors that can be driving the rates a consumer is paying. Some factors include state insurance requirements, the driver's age, the car make and model, previous violations and prior driving record, annual mileage, the consumer's credit history, zip code, marital status and even gender,” Peters said, “Moreover, these factors may vary by state and company, but most states use credit history as a factor. So, it's important to keep track of your credit score and manage it accordingly.”
Peters accredits state-wide insurance laws to the frequently changing average cost of car insurance. She describes that each state has varying laws that require a minimum auto insurance coverage and limitations required of owners on vehicles. Higher limits or required vehicle coverage can cause higher insurance minimums for consumers. She mentions that the frequency of accidents per state also plays a role in state-wide insurance regulations. For example, the more auto accidents in a state will increase its minimum premium for each customer.
She also urges consumers to check the price of coverage at all levels of deductibles, both low and high. Low deductibles offer a higher premium while higher deductibles offer a lower premium. However, consumers will have to evaluate the trade-off and decide which is best for their personal financial situation.
To learn more about the insurance process, Peters directs students to the Insurance Information Institute which offers free educational guides. She also suggests meeting with an insurance agent who can explain policies, coverage and pricing specific to the consumer’s personal financial situation.
More tips about car insurance can be found on MoneyGeek’s website.
