Affordable auto insurance policies - My Blog

Affordable auto insurance policies

Sugerencias de seguro de auto económico

If you are looking for alternatives very cheap For car insurance, you will need at least three quotes so that you can compare prices and coverage with different insurers. For drivers in the Los Angeles, CA area, the average cost of coverage is about $2,500 annually, according to a study by car and driver.

Because the cost of coverage depends on many factors, including the cost of the insured vehicle, age, driving record, address, among other factors, each person will pay a different amount commensurate with their profile. That is why we urge you to compare cheap auto insurance since the different insurers are going to quote with a differentiated risk model from their competition. Based on the probability of risk and claims in addition to the insured value, the cost of your insurance policy is determined.

Types of coverage

Every driver must evaluate all coverage alternatives and choose a policy that is in accordance with the risk you want to assume in addition to the minimum requirements of the State where you reside.

For drivers who want to pay as little as possible, public liability coverage in accordance with State requirements is the best option, but it is very important to keep in mind that your vehicle will not have any type of coverage and you will be responsible for the full amount of the repair or replacement. There is also a risk of liability for any damage caused in excess of the State’s limits, be it bodily injury or property damage.

Any additional coverage such as uninsured motorist, personal injury, collision and all risks will significantly increase the cost of the policy. In certain circumstances, the additional cost of having full coverage may be in excess of 5 times the cost of having coverage for the minimum required by each State.

How does age affect the cost of coverage?

Generally, young people are the most prone to accidents, this is due to the short experience of driving and that some tend to drive recklessly. Due to the high propensity, adolescents and adults in their 20s pay the most, sometimes up to 1.5 times the average cost.

For adults between 30 and 40 years of age, rates tend to stabilize and approach the average cost. Even if you have a good driving record, it is advisable to seek quotes when you meet or are within this age range, since insurers may consider that there is less risk and therefore be willing to offer a more competitive package.

For drivers with impeccable records, after 60 years of age there is not as much margin and opportunity for savings and the majority of the population must be paying the lowest prices for coverage. In these cases, it is advisable to look for savings related to coverage characteristics or looking for packages that include other assets such as the home.

Which companies have the cheapest coverage?

According to a Article published by the Value Penguin company, the average public liability coverage is $60 per month (or $720 per year). This average varies depending on the location where the driver resides, since each State has its own regulations that vary by State since they all have different propensities for accidents and claims. To put the cost of the largest insurers in perspective, below we have included the average of minimum liability coverage:

Insurance carrier Monthly cost Annual cost
USAA $36 $432
FarmBureau $39 $468
erie $42 $504
StateFarm $44 $528
American Family $53 $636
Geico $56 $672
National Average $60 $720
progressive $74 $888
AllState $76 $912
*data and costs for the study carried out by Value Penguin (by LendingTree)

Which company should I choose and what criteria should I consider when making a decision?

Although cost is a very important factor to consider, there are many other criteria that will be key to consumer satisfaction. Some criteria that should be considered are:

  • Communication Method When Purchasing or Processing Claims:
    • There are many companies that work through local insurance brokers that have a physical presence in many cities and geographies, this allows them to give a more individualized and in-person treatment to those clients who prefer it that way. The disadvantage in this type of model is that it tends to have an added cost because insurers have a higher operational cost.
    • Companies like Geico and Progressive are leaders in technology in addition to being premium insurers, all dealings are done through web services or over the phone. In these cases, the user experience is excellent because they have tools that allow them to quote or process claims in an agile and efficient manner. The benefit is that many young people prefer to use technology instead of having to go to an office, and because insurers have lower operating costs, they can offer more competitive prices.
    • Network of Body Shops and Associations with Suppliers:
      • It is important to consider how large a network of providers and workshops the insurer has a partnership with. On many occasions when one uses smaller insurers, this can represent problems when repairing a vehicle in a workshop of your choice or with very good reviews, this is because that cost may be higher than the estimate and the insurer does not want to cover the extra cost. In the case of large insurers, many of the workshops already have established agreements where they honor the price of the estimate.
    • In conclusion:

      In our opinion when it comes to buying car insurance, it is the consumer who is in control given the wide variety of companies and products available. For those who are looking for savings in the cost of the policy, they can settle with the different coverages in addition to comparing prices with different companies in order to end up with a monthly or annual payment that fits their budget.