Millions of people drive their cars every day for business or personal purposes. There are obvious risks involved with operating a vehicle, as road conditions are constantly changing.
Auto insurance protects you against potential liability claims and financial loss. It covers you in the event that you are involved in an accident, and your vehicle is damaged. The policy may also provide coverage if your vehicle is stolen or damaged in a unique way, such as in a natural disaster.
As you determine which type of coverage is the best fit for your vehicle, here are a few important facts to know about auto insurance in Atlanta, Georgia.
Auto insurance companies look at multiple factors during the underwriting process. Each carrier has different guidelines regarding the amount of risk they are willing to accept. During the application process, you will likely be grouped based on the amount of money and possible claims the insurer thinks they will have to handle.
The insurance company will look at your driving history to see if you have any claims on your driving record. If you were held responsible for an accident or suffered any other violations, those generally stay on your record for up to three years. However, some insurers may check the previous five years before offering you coverage. Your credit history is also an important factor. If you have bad credit, you will likely have to pay higher premiums until your credit score rises.
Many carriers view drivers who have periods where they aren't insured as extremely risky to cover. If you go through a lapse in coverage, that will drastically impact your car insurance rates. It's recommended that you purchase auto insurance before your current policy ends to avoid potential issues.
While you are legally required to purchase liability insurance, other types of coverage are available at rates reflective of your car's value. Collision coverage is generally the most expensive because it covers any damages to your vehicle. You can add comprehensive coverage to your policy at half the cost of collision coverage.
For a small increase in premium, you can add gap coverage, roadside assistance, and uninsured motorist coverage to your policy. Assess your options and determine which type of coverages align with your needs. By spending a little more now, you could prevent major financial setbacks in the future.
Many auto insurance companies offer discounts for maintaining a clean driving record, taking a defensive driving course, installing anti-theft devices, and paying all of the premiums in full at the start of the policy. Qualifying for multiple discounts can help you save a lot of money on premiums.
Many insurance companies look at relevant data such as insurance accident statistics related to vehicle type. Data like this is significant in figuring out the amount you'll pay for your premium. If you have a luxury car, replacing or repairing those parts can be difficult and expensive for an insurance company, thus increasing your rates. If you are driving a safe model, the chances of being involved in an auto accident are reduced, which lowers your rates.
Your deductible is the amount of money you are required to pay if your car suffers damage before the insurer steps in to cover the rest. Insurance prices are determined based on the amount that the company believes it will be responsible for in the future. By raising your deductibles, you take on more of the financial responsibility. Because the insurer knows that they won't have to pay as much for your claims, they will give you a lower monthly premium. While raising your deductible helps you save money on premiums, it's not recommended unless you have enough money to cover a large deductible before filing a claim.
There are multiple factos to consider when searching for auto insurance in Atlanta, GA. Shop around for quotes before making a decision. If you have any questions about your auto insurance policy, contact our team here at Liberum Insurance, and we will assist you.
Liberum Insurance is an Independent Agency. We have access to top A-rated carriers so we can provide great coverage at competitive rates. Our priority and fidelity are to our clients first.
