What Affects Collision Insurance Rates?

Collision insurance is a crucial part of your auto insurance policy, covering damage costs from crashes involving another vehicle or object. Several factors influence the cost of your collision insurance premiums:

• Your driving record: A history of moving violations or claims can increase your rates.
• Your vehicle: The make and model of your car can affect your premiums. Luxury cars often have higher rates due to their expensive repair costs.
• Your location: Living in an area with higher accident rates can result in higher premiums.
• Your driving activity: The number of miles you drive annually can impact your insurance costs.
• Age and gender: Statistically, younger drivers and males tend to pay higher premiums.

What Does Collision Insurance Cover?

Collision insurance covers damage your car sustains in an accident or collision with an object. It typically pays for repairs or replacement costs resulting from:

• A collision with another vehicle
• A collision with a tree, fence, or building
• A single-car accident where the car rolls over

However, collision insurance does not cover:

• Damage to another driver’s vehicle
• Damage your car sustains when you’re not driving it
• Medical care for you or others
• Theft of your vehicle

Do I Need Collision Coverage?

If you have a vehicle loan or lease, your lender likely requires you to carry collision insurance. This protects their investment and ensures you can cover repair or replacement costs. If your vehicle is paid off, you have the option to drop collision coverage, but consider the following:

• Your car’s value: If your car’s value is low, the cost of collision insurance may not be justified.
• Your financial situation: Without collision insurance, you would need to cover repair or replacement costs out-of-pocket. Ensure you can afford this risk before dropping coverage.

How to Save Money on Car Insurance

There are several strategies to lower your auto insurance premiums:

• Increase your deductible: Higher deductibles can reduce your premiums, but you’ll pay more out-of-pocket for claims.
• Reduce unnecessary coverage: Evaluate your policy to eliminate coverage you don’t need, such as roadside assistance if it’s already covered by another service.
• Choose the right vehicle: Lower-priced economy cars generally have more affordable premiums.
• Take advantage of discounts: Bundling policies, insuring multiple vehicles, and other discounts can save you money. Ask your insurer about available discounts.
• Shop and compare providers: Compare policies from multiple insurers to find the best coverage at the best price. Online comparison tools can simplify this process.

Don’t Forget About Your Credit Score

Your credit score can impact your auto insurance premiums. Many states allow insurers to review your credit-based insurance score when calculating rates. Check your credit report and take steps to improve your credit to potentially lower your insurance costs.

Contact O1ne Mortgage for Expert Mortgage Services

At O1ne Mortgage, we understand the importance of managing your finances effectively. If you have any mortgage service needs, call us at 213-732-3074. Our team of experts is here to help you navigate your mortgage options and find the best solutions for your financial situation.