What Kind Of Insurance Do I Need When Financing A Car?

What Kind Of Insurance Do I Need When Financing A Car?

Car Insurance policy is required by law in almost all the states in the US, and Atlanta, Georgia is one of them. The average cost of car insurance in Georgia is around $1,388 per year. Insurance premium prices will vary from insurer to insurer. The cost of your policy will highly depend on the coverages you choose. Therefore, you should know about what factors affect your insurance costs.

Minimum coverages required for car insurance

  • $25,000 bodily injury per person
  • $50,000 bodily injury per accident
  • $10,000 property damage per accident

Cost determining factors

Various factors look while determining a car insurance quote. These factors are:

Location of your house/apartment:

Where you live affects what you pay to your insurer. For instance, if you’re residing in a densely populated urban region, your premium rate most likely goes up compared to those staying in a low-populated area. Nevertheless, many other variables come into play while determining your insurance costs.


If you’re looking for car insurance for your teenage son or daughter, you’ll likely pay more than the average rates. The reason is that young drivers are more likely to get into a road accident. Therefore, they fall under high-risk groups, leading to higher premiums.

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what kind of insurance do i need when financing a car
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Crash statistics show that male drivers, in their early years, are more likely to get into accidents than females. Hence, young male drivers pay higher rates than female drivers of the same age group.

How long you have been driving for:

If you’re a new driver or don’t have many years of experience in driving, you bring greater risk to the table for your insurers. Therefore, new drivers pay a higher premium than experienced ones who’ve demonstrated their road-safety behaviors while driving.

Your driving record:

Needless to say, drivers with records of accidents or frequent traffic violations bring a good possibility of car insurance claims. Therefore, insurers naturally charge more premium to those convicted of violations such as DUI, over-speeding, and others.

Car insurance discounts


Typically, the affiliation discount is for active or retired military members. Other discount receivers could be those who work for insurer-affiliated companies or federal employees. Additionally, most carriers provide other affinity discounts. Those engaged in the medical field, firefighters, police officers, and teachers, may also qualify for affiliation discount.

Personal traits

Auto insurers may cut your premium for simply owning a home – you don’t need to buy homeowners insurance from your auto insurer. Furthermore, insurers usually offer discounts to older people ( 55 years or older). However, they may need to take and pass the state-verified defensive driving course.

Car-related features

You can get small to medium discounts if you run vehicles with dual airbags, anti-lock brakes, or other safety installments. Discounts typically apply to collision insurance coverage or personal injury. Auto insurance providers may offer a discount for your new car or if your vehicle type is electric or hybrid.


Customer loyalty

Long-term customers or the customers that bring more business to an insurer by purchasing multiple policies, attract loyalty discounts. For instance, you have a higher probability of getting discounts when you bundle your homeowners and auto insurance policies. Similarly, you multi-vehicle insurance discount if you insure more than one vehicle with a single insurer.

To conclude, car insurance can be expensive in Georgia. However, with good knowledge about the insurance landscape and the factors that affect your premiums, you can find the one the fits you best.

Furthermore, to improve your knowledge and help you sell insurance more efficiently, read about how to sell insurance and become familiar with words like insurance cluster and insurance aggregator.

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