9 Things You Didn't Know About Auto Insurance


Auto insurance is one of those things that everybody has to have, but nobody really knows that much about. So, in the interest of helping our readers be a little more informed (and hopefully saving you some money in the process), here are 9 things you probably didn't know about auto insurance.

1. Your credit score can affect your rates. Insurance companies use something called an insurance score to help determine rates, and that score is partially based on your credit history. So, if you've got good credit, you're probably paying less for car insurance than someone with bad credit.

2. If you drive an older car, you can save money by dropping collision and comprehensive coverage. If your car isn't worth very much to begin with, those coverages aren't going to do you a whole lot of good anyway.

3. You can save money by bundling your auto insurance with other policies from the same company. This is called multi-line discounting, and it can end up saving you quite a bit of money on your total premium.


4. Speaking of discounts, there are lots of different ways to save money on auto insurance. If you've never compared rates before, now's the time to start because you could be paying way too much.

5. Your rates can go up if you get into an accident, even if it wasn't your fault. This is because accidents generally increase the chance that you'll get into another one, so insurers tend to charge more after an accident report hits their desk.

6. Conversely, your rates can go down if you haven't had any accidents or traffic violations for a while. This is called a safe-driver discount, and it's usually around 10%.

7. If you have a teenage driver in your household, expect your rates to go up…a lot. Teens are considered high-risk drivers because they're more likely to get into an accident than adults, so they pay higher rates as a result.

8. There are different types of auto insurance coverages, and not all of them are required by law (although some are). The three main types are liability (which covers damage you cause to others), collision (which covers damage to your car), and comprehensive (which covers everything else).

9. Your rates may go up at renewal time, even if you haven't had any accidents or violations. This is because insurers generally increase rates every year to keep up with inflation and the rising cost of repairs and medical care—so don't be surprised when your bill goes up a few dollars next year!


Auto insurance may not be the most exciting thing in the world, but it's definitely something worth knowing more about—especially if it means saving yourself some money in the process! Now that you know a little bit more about auto insurance, be sure to shop around and compare rates before renewing your policy each year—you could be surprised at how much money you could save simply by switching companies!