If you’re thinking of getting a new car or want to replace an old one, you may be wondering how to choose car insurance 2022. There are many factors to consider before making your decision, such as the cost of coverage, liability limits, discounts, and your credit score. In this article, we’ll take a look at some of the most important factors that will help you find a policy that suits your needs.
Cost of coverage
The average cost of car insurance is expected to rise by 0.6% in 2022, after a decline in 2021. In all, the average cost of car insurance will reach $1,935 per year, with a variation by state. While the average cost of car insurance will increase slightly, drivers in 22 states will experience a rise in premiums. While the Omicron variant should have minimal impact on the premiums, insurers will probably not offer COVID-19 discounts.
Liability limits
When choosing a liability coverage limit for your car insurance in 2022, you have several choices. Generally, most insurance professionals recommend that you choose a higher limit to protect your finances in case of a serious accident. To make your choice easier, you can ask a licensed insurance agent. Bankrate analyzed the liability limits of a base profile driver, who owns a 2020 Toyota Camry and commutes to work five days a week while driving about 12,000 miles per year.
Discounts
If you want to save money on your auto insurance, then make sure to take advantage of discounts. Many insurance companies offer discounts to customers who renew their policies for more than five years. Other companies like Allied, Liberty Mutual, and Travelers give customers a discount when they pay for their policy in full in a single monthly payment. Some insurance companies also reward loyal customers with additional discounts, such as a 10% early purchase discount or a loyalty discount for paying up front.
Credit score
Consumer groups have criticized insurers for using credit scores to determine rates. They claim that poor credit scores make people more likely to file insurance claims and that people with higher scores are more responsible. However, studies have shown that low credit scores have a correlation with higher insurance rates. If you are interested in getting cheap car insurance, consider raising your credit score to help you afford the policy. Here are some tips for improving your credit score to get the best rates.
Location
Where will you be buying car insurance in 2022? Depending on the size of your vehicle, it may be a large or small city. There are a variety of reasons for the increase in premiums, including inflation and the cost of living in a particular region. In some cases, insurers can reduce your premiums based on your personal rating factors, such as a lower risk of car accidents. Other factors can lower your premiums, such as fewer claims in your area and an at-fault accident may no longer be charged. However, speaking with an agent is always a good idea, so that you’ll know what you’re paying for before you sign on the dotted line.
Accident history
It is important to remember that drivers who cause accidents pay more for car insurance than those who are accident-free. So, while you should be careful to keep your driving record clean, it is important not to become complacent. Maintaining safe driving habits is an ongoing process. Some insurance companies even offer accident forgiveness, which allows drivers to avoid the surcharges on their future insurance bills. To save money on your car insurance policy, you should check out the accident forgiveness offers available from companies such as State Farm.
