By far the largest area of risk involved in owning and operating an automobile is the risk of an accident. By definition, accidents cannot be planned for, and even if you are the most careful of drivers you are still at risk for accidents since you must rely on the skills and care of your fellow drivers as well. It’s no surprise then that so many people seek auto insurance quotes for accident coverage both online and in person. There are many things to consider when seeking car insurance quotes by text for accident coverage that can affect your ultimate cost.
First you must determine whether you will be considered an at-risk driver or a low-risk driver. An at-risk driver is a driver who has one or more of the following conditions on their record: At least one collision with another vehicle in which they were determined to be at-fault (the duration that moving violations remain on one’s driving records vary from place to place), any other serious moving violation such as a DUI (driving while under the influence) conviction, a large number of tickets (even if all have been paid), or even gaps in holding auto insurance, for whatever reason. At-risk drivers will have to locate insurance companies that specialize in at-risk drivers, and should expect to pay significantly higher rates.
If you are not an at-risk driver, you are categorized as a low-risk driver and will receive significantly lower car insurance quotes by text. If you seek to lower your rates even further, there are some steps you can take. For one, you can drive a less-expensive car. Expensive cars, especially cars categorized as “sports cars” will have much higher insurance rates. You can also accept a higher deductible. Your deductible is the amount of money you must pay out in an accident before the insurance covers the remaining cost; for example, if you have a $5000 deductible, and the repair bills stemming from an accident are $10,000, you will only receive $5000 from your insurance coverage. You can also choose to not carry comprehensive or collision coverage and keep only your accident coverage (often also called ‘liability’ coverage). All of these steps will reduce your rates.
Another aspect affecting your insurance rates – and one few people think of – is your credit score. Rightly or wrongly, credit scores are becoming a barometer of risk assessment for many industries, including the insurance industry. A poor credit report is considered a sign of risk as it is an indication of financial troubles, which can impact an individual’s ability to pay their premiums, and an indication of overall turmoil in an individuals’ life. Before seeking auto insurance quotes for accident coverage, it’s wise to order a free copy of your credit report from the main credit reporting agencies and check it for inaccuracies – inaccurate information in your credit report accounts for 25% of all lowered credit scores. Have all inaccuracies corrected before seeking accident coverage for your car.