Car Insurance Costs & Classes of Use

Posted on 4 March, 2022

When you’re shopping for car insurance, getting a great rate is probably at the top of your priorities. This prompts the question, what affects car insurance costs, and how can I minimize mine? There are a few answers to this question, but one of the most important factors is the type of car insurance you choose. Most people don’t know that there are several types of car insurance, and the type that you choose has a major impact on your premium. When you submit an application for car insurance, you’ll likely complete a questionnaire that includes questions about how you typically use your car, and your answers to these questions will determine which of the following types of car insurance you get.

Only Social

The cost of car insurance is based on the general risk an insurance company assesses a driver to carry. Statistically speaking, the more time you spend on the road, the greater your liability is. It’s unsurprising, then, that drivers who only use their car for social engagements are likely to see lower rates. Coverage that is based on driving for social purposes includes visits to family and friends, shopping, vacation trips, and other non-work excursions. This type of policy is also sometimes called a social, domestic, and pleasure policy.

Social and Commuting

If you need coverage for social driving purposes, but you also commute to work, you’ll need a car insurance policy for social plus commuting. According to the National Highway Traffic Safety Administration, as many as 24% of all fatal accidents occur in the morning and evening — the times that people are most commonly commuting. This puts drivers at an increased risk, and that means increased liability for car insurance companies. Car insurance rates that include coverage for commuting are thus likely to be higher than those that are strictly for social driving.

Business Class

If your job requires driving, and you use your own car, you’ll need insurance that covers driving for business purposes. This may be necessary for positions that include visiting clients or working at multiple job sites. Even if you do not perform these tasks regularly, you need insurance that covers rare instances of business-related driving. In some cases, your employer may reimburse you for the additional costs, so it’s important to keep a record of insurance costs and gas mileage.

Commercial

Drivers who spend a majority of their time transporting goods or people for work will likely need insurance for commercial purposes. This type of policy can be similar to business class insurance, so it’s important to speak with your employer and your insurer to see what type of coverage is necessary. Commercial insurance is usually best for individuals who drive for a living.

About Byrnes Agency

At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.

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Dayville Office

Phone: (860) 774-8549

394 Lake Rd

Dayville, CT 06241

United States

info@byrnesagency.com

Hours of Operation: Monday- Friday 9:00am-5:00pm

Norwich Office

Phone: (860) 886-5498

6 Consumers Avenue

Norwich, CT 06360