If you live anywhere in America, then you know that it’s basically impossible to get through life without owning a car. This is especially true in states like Georgia that don’t have robust public transportation systems. One important thing that comes along with owning or leasing a car is car insurance.
You might have noticed that the cost of coverage varies depending on the vehicle on your policy. Why is that? Read on to learn which factors impact Georgia car insurance rates.
Your Car’s Value
Car value is a touchy topic. The old trope is that your car loses a ton of value the minute you drive it off the lot. However, recent surges in used car prices have put this trope to bed.
Whether you bought your car new or used, the overall value of your car has a huge impact on your cost of coverage. If you’re an insurance company, then you’re taking on much more risk if you insure a Maserati than if you insure a Honda. The way insurers mitigate this risk is by boosting the cost of insurance for people with higher value cars.
How Much You Use Your Car
If you were to write a guide to car insurance rates, you’d have to include a section on how car usage impacts your insurance rates. Once again, your insurance company is measuring how much risk they’re taking on by insuring your car. A person who drives 10 miles per day to and from work poses less risk than a person who drives 100 miles per day.
In general, the lowest policies are reserved for people who drive 10,000 miles per year or less. If you drive more than that, expect an increase in the cost of your auto insurance.
The Types of Vehicles on Your Policy
Some types of vehicles are simply more expensive to insure than others. This is often due to things like higher-than-average costs of repairs, and specific safety risks posed by the vehicle.
For example, a Volvo may cost more to insure than another car of equal value because of Volvo’s specialized parts. Repairing a damaged Volvo is going to cost your insurer significantly more to repair.
The Vehicle’s Location
Car insurance values vary depending on the location in which your car will be stored. The rate you receive is based, in part, on your zip code. If you’re thinking of moving, you might consider contacting your insurance company to determine how much your insurance will go up if you move.
In addition to your vehicle’s location, you can often save money if you store your car in a garage versus parking in a driveway or in a parking lot.
Are You in the Market for Georgia Car Insurance?
No one likes shopping for Georgia car insurance, in fact, the only thing they like less is paying for car insurance. There are a ton of different factors that go into the calculation of your car insurance rate. Thankfully, understanding the factors that determine your cost of coverage helps you make choices that’ll minimize your costs.
Are you a car aficionado? Want to learn more about everything related to cars and driving? Check out the rest of our blog for tons of information about cars and much, much more!