Process of car insurance in the USA

Parameters affecting the cost of the policy

These parameters are taken into account when calculating the cost of the policy for each person separately:

  • Age (insurance for those, who are younger, than 25, is significantly more expensive, since the insured driver is in the ‘young driver’ category and, according to statistics, most accidents are made by people under 26 years old, so the coefficients are increased for this category of people)

  • Local license (if you are a resident of the state, then you must have local license. Moreover, insurance is much cheaper with it)
  • Driving experience (even the experience, which was gained in another country, counts. You just need to send a copy of the license)
  • The presence of higher education (discounts up to 10% if there is a diploma (especially if you are an engineer)
  • Availability of stable work and high income
  • Marital status and having children
  • Type of insured car, its age and price, availability of collateral for a car (credit / leasing is 10–30% more expensive)

  • Availability of anti-theft systems
  • The presence of a garage (when having it, the insurance can come out cheaper)
  • Credit history
  • Driving history (penalties for the last year, number of removed points for violations (this item is most important, as it characterizes you as a driver)
  • Availability of a certificate of the school of emergency driving (in fact, you can read the brochure with the rules online, it can help to get a discount of a couple of dollars)
  • The state where you live, and where you will use the car (here the accident rate by states is taken into account)

  • The county in which you lived (the accident rate by county, the median income of people living in the county and other less obvious parameters are taken into account)
  • Rates of insurance premium payments for the previous year, for example due to hurricanes on the East Coast in the winter of 2016 and a large number of payments, insurance companies increased policy prices from June 2016 for all states.

As many factors influence the cost of the policy, it is best for you to find a professional broker, who will help you choose the policy you need. In order to minimize risks, you should choose services of only large insurance companies or licensed insurance agents. Do not look just at low prices of the insurance company, as it could mean short-term benefits and a possibility of large loss in the event of an unforeseen accident on the road.