Car insurance is a requirement in all states in the US. But irrespective of your state’s auto insurance requirements, it is always a good idea to ensure your vehicle is adequately insured.

While virtually everyone on the road has auto insurance, most people have little to no knowledge of how insurance works which could mean having a bad deal without knowing it. This guide highlights some auto insurance facts you may not have known, and that can help you be in control when shopping for car insurance.

1. Large Companies Don’t Always Mean Getting the Best Rates or Services

Most people buy their auto insurance covers from big-name companies, assuming they have better services. However, the truth is that you can get far better deals and services from less-known insurance companies. 

The only difference is the big names have the money to spend on TV ads during peak hours, thus creating the impression of being the best. So, before spending money on that big-name insurance company, do a little shopping online on local providers. 

You may be surprised at the kind of deals you can get. Also, smaller companies are keen on making a name for themselves, so you can expect to get quite a difference in the quality of service provision.

2. The Average Cost of Full Coverage Is $1,470

If you drive an average car, the cost of full coverage should be around $1,470. However, the cost may vary based on your state, with the cost going as high as $2,700 if you live in expensive states. But your car model also matters. 

Premiums for a luxury car may be much more expensive because they are costlier to repair or replace. But before paying exaggerated premiums for your luxury car, it would help to shop around and ensure that you balance the cost and the quality of services you get.

3. You Can Get Insurance after a Traffic Conviction

After a serious traffic offense such as DIU or reckless driving conviction, you can have the DMV suspend your driving privileges. After the suspension period expires, the DMV may demand that you have SR-22 insurance as proof of carrying the minimum allowable coverage before reinstating your privileges. 

SR-22 insurance premiums are significantly higher than normal premiums. In some states, the premiums can be as high as four times your pre-convention rate. But you can access cheap SR-22 insurance from online comparison resources such as Cheapinsurance.com.

4. You Could Get Discounts

There is a chance you qualify for some discounts, but most insurance companies won’t tell you if you do not ask. For instance, if there are multiple cars in your household, you could pool them into one policy and earn discounts. 

Also, if your car has modern safety features such as advanced driver assist and anti theft features, you could qualify for discounts. Some insurance companies even offer discounts for newer cars and drivers that go the extra mile to gain defensive driving skills.

There are several other ways to earn discounts, so it’s best to ask your insurance agent about discounts their firm offers. 

5. Premiums are Costlier for Teen Drivers

You will pay higher premiums for your teen child if they drive a car. According to statistics, drivers between the age of 16 and 19 are three times more likely to get into an accident than older adults, thus the high cost of premiums. 

Also, male teens are more likely to get into an accident than their female counterparts, so you may need to pay more for them. But you could get some discounts if your kid is a performer at school and doesn’t have a record of missing school. Another factor that can help lower your child’s insurance is having them take defensive driving lessons.