Have you wondered how your car insurance bill can be so high? It can be confusing trying to figure out the many different pieces that play a part in your auto coverage bill. By gaining a better understanding of the various components, it should help a consumer in managing how much they pay for insurance. Below we will review the basic elements that will part of your car insurance bill. In general, these numbers will apply to most car owners; however, there can be adjustments with the numbers due to multiple factors. These can be your age, the state you drive in, the type of car being insured and your driving background.
The clear leader making up the cost of your vehicle insurance will be collision cost. One of the areas insurance organizations will look at is the cost to replace your automobile. If you are purchasing a new car this will be where the majority of your cost will fall. In the research we did with we found the average collision cost made up 50% of the entire bill in some instances. Below is a sample review we did on different models of sports cars.
So if you are paying $800 for a six month policy there is a good chance your collision deductible will be in the $400 range. These numbers assume you are taking out a $500 deductible. If you adjust the size of the deductible you likely will see changes to the cost. One of the better means to manage collision cost is to drive an older vehicle. This will help you increase your deductible and pay lower cost.
The other main area that will make up your insurance cost is liability coverage. Unlike collision coverage, liability insurance is required by most state insurance offices in order to drive on the road. The lower cost will come to those signing up for the minimum requirements. This however, may not be the smartest decision as you could be exposed if a lawsuit was brought against you. For more details visit our full coverage auto insurance page. In our research we found that about 33% of your cost will come from liability coverage. These numbers include per person and per vehicle insurance along with property damage.
Other Insurance Cost
Each driver will have different needs and along with this the coverage options may change. One of the common type of coverage’s most drivers will include is comprehensive. In our studies we saw that comprehensive cost make up about 10% of the total insurance bill. These numbers were based on a deductible of $500. So with an insurance bill of $800 a typical driver with a $500 comprehensive deductible should expect to pay approximately $80. The other cost making up your insurance bill could be for areas like medical or PIP, uninsured, towing or rental coverage. This cost should be smaller than 10% in most instances and should be added in based on the needs of the drivers. For more details visit our liability coverage page.