Your Automotive Insurance Questions Answered

Insurers price their rates based on many factors and the type of automobile you drive is one of those factors. However, that doesn’t necessarily mean that your rates will go up. For example, purchasing a new car with better safety features can actually lower your rates!

Financed cars require more insurance. Clearly, the amount of insurance you buy will affect the price of your policy. New cars that are financed through a bank will require you to carry a certain amount of comprehensive, collision and liability insurance – which means higher premiums. Purchasing a car outright gives you the opportunity to decrease those levels and save money on your premiums. While most states have minimum coverage requirements prescribed by state law, it is almost certain that you will be required to carry coverage well over those amounts if your car is bank financed.