“Why Your Collision Insurance Rates Are Rising and How to Save”

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What Affects Collision Insurance Rates?

Collision insurance covers damage costs from a crash involving another vehicle or object. Rates are influenced by several factors, including:

• Your driving record: A history of moving violations or claims can increase your rates.
• Your vehicle: The make and model of your car affect rates, with more expensive cars typically costing more to insure.
• Your location: Living in an area with higher accident rates can result in higher premiums.
• Your driving activity: The number of miles you drive can impact your premiums.
• Age and gender: Younger drivers and males often pay higher premiums.

What Does Collision Insurance Cover?

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

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

However, it does not cover:

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

Do I Need Collision Coverage?

If you have a vehicle loan or lease, collision insurance is usually required. This protects the lender’s investment and your financial interests. If your vehicle is paid off, you can choose to drop collision insurance, but consider:

• Your car’s value: If your car’s value is low, the cost of collision insurance may not be justified.
• Your financial situation: Dropping collision insurance means you bear the financial risk of repairs or replacement.

How to Save Money on Car Insurance

Here are some 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 coverage: Eliminate unnecessary coverage to lower your premiums.
• Choose the right vehicle: Lower-priced economy cars generally have more affordable premiums.
• Utilize discounts: Bundle policies, insure multiple vehicles, and ask about other available discounts.
• Shop and compare providers: Compare policies from multiple providers to find the best rates.

Don’t Forget About Your Credit Score

Your credit score can impact your insurance premiums. Check your credit report and score to identify and address any issues that could affect your rates.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you with all your mortgage needs!

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