Getting Car Insurance: 5 Things to Consider

driver signs document next to two cars that have collided

Getting auto insurance is a major part of purchasing a vehicle. The vehicle you own, car usage and driving habits, and personal budget all factor into your car insurance needs. As you’re shopping for a car and auto insurance, here are some important factors to consider:

  • How often you drive
    If you drive often or have a lengthy commute to work, school or other activities every day, you want to choose a policy that reflects how much you drive your car.

  • Professional use of vehicle
    If you use your car to provide professional services, commercial auto insurance is necessary. According to the Insurance Information Institute, a personal auto policy will not provide coverage if you transport paying passengers through a ride-share service, deliver pizzas, drive as a courier, or use your car for other commercial activities.

  • Car year, make and model
    Since insurers know what types of cars, makes and models are more—or less—likely to incur claims, your insurance will be priced according to its safety record, flashiness, maintenance costs, etc. For example, a flashy sports car with a powerful engine is more likely to incur higher insurance costs than a mid-sized sedan.

  • Other people who will be driving the car
    While most auto insurance policies generally cover other occasional drivers, it’s important to inform the insurance company of all drivers who live with you or use your car on your policy. This will likely impact the cost.

  • Location of vehicle
    Where you live often impacts your insurance rates. For example, cars parked on the street often face a greater risk of theft or vandalism, which will most likely lead to higher insurance premiums.

Before you get car insurance, you need to find a reliable vehicle that meets your budget. If you’re in the market to purchase a vehicle and need help getting approved for dealer financing due to bad credit or no credit, a car dealership enrolled in the Credit Acceptance program can help you get started.

Start your auto financing pre-qualification today!