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How to Reduce Your Car Insurance Premium

In current times, when owning a car is practically essential– car insurance is an absolute necessity. However, paying a premium has always been a topic of concern, but that’s why we’re here to help.


Typical Car Insurance Coverage

Many people will be concerned about the issue of whether premiums increase prices. Note that no-fault claims, or personal injury protection claims, will not cause your premiums to rise (although state laws should also be slightly different). However, it is important to pay attention to the specific types of insurance presented to you when getting an insurance quote.

Liability Insurance

Liability implies that the scope of the insurance coverage is your responsibility in the event of an accident. This pays for repairs of damage sustained by other person’s car (if it is the other person’s responsibility, he will pay for your repairs with his liability). Liability includes bodily injury and damaged property.

The bodily injury liability limit is $25k/50k: the former is the maximum payout per person per accident, the latter is the total maximum payouts per accident.

Property damage, on the other hand, has a limit of $50,000. The premium of liability accounts for about half of total insurance costs. (Usually, people who buy a house with a family will choose a higher coverage of 100k/300k)

Uninsured Motorist Clause (optional)

This coverage applies to parties that have sustained injuries or damaged from an uninsured party. You must pay a premium in order to activate this clause. Similarly, our uninsured motorist limit is also $50k/100k.

Comprehensive Coverage (optional)

This covers your costs when your car is damaged in a natural disaster or another case in which your car sustains damage that is not due to a crash. This item is deductible – that is, there is no limit, but the first $XXX of the loss needs to be paid for itself. So the lower the deductible, the higher the premium. For example, if your deductible is $100, you pay $100 yourself, and the insurance covers the rest.

Collision Insurance (optional)

When an accident occurs, this covers the cost of damage sustained to your vehicle. This option also has a deductible. This means you will have to pay up to a certain amount before the insurance covers the rest of the costs.

Personal Injury Protection (PIP)

This is optional in some states are optional and mandatory in others, including New York. No matter who is responsible for a car accident, PIP pays for the medical and property damage expenses.

All Risk Insurance

The definition of all-risk is relatively broad. Essentially, if the insurance doesn’t explicitly exclude a type of risk, all-risk insurance covers it. For example, the five aforementioned policies are all risk. 

Emergency Road Service

If your car breaks down on the road or is out of oil, you can use this insurance cover your towing costs (each insurance company is slightly different, some regulations are measured by the mile). In addition, the insurance company may also stipulate that it must purchase collision or comprehensive insurance to secure ERS.

Rental Reimbursement

If your car is sent for repair and you need to rent another car, this will cover the cost of your rental car. The same limit, such as 30/900, 50/1500. This refers to a maximum of $30 or $50 per day for a total of up to 900/1500.

Medical Payments

No matter who is responsible, you can cover medical expenses or ambulance fees.


Factors that Influence Premiums

Driver’s Age

This may be one of the most important factors in determining the cost of an insurance premium. A general rule: the longer the driving experience, the lower the premium. Of course, this is also based on an assumed absence of accident records. In addition, having a driving permit will incur a higher premium than that of a valid driver’s license. In fact, some companies don’t give guarantees at all.

Gender of the Driver

Another general rule: the premium for women tends to be lower than that for men.

Marital Status

Married people tend to have lower premiums than unmarried people, and have even lower premiums if they have children.


Cities tend to have higher premiums than rural areas, and the greater the traffic, the higher the premium. However, premiums do vary by state.

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