Whether you’re shopping for car insurance on your own or taking the advice of friends and family, buying a policy shouldn’t be done in a rush. It’s best to clearly understand what you want and how much coverage you need. There are several questions that insurance companies ask when buying car insurance to give you an accurate quote. Here are a few of the most important:
What’s Your Zip Code?
Your zip code is a sequence of numbers and letters the post office uses to sort mail. But it also plays a big role in your car insurance rates.
Insurance companies look at crime rates, accident reports and road conditions in a given area when calculating your rate. That’s why your move across town could make your car insurance cheaper or more expensive.
Do You Want a Deductible?
The majority of insurance providers provide several discounts that might reduce your rate. However, not all agents ask you about them. You’ll also be asked to select a deductible amount. Choosing the right policy for your budget can be a big factor. Websites like https://www.carinsurancecheap.net can help you determine how much to choose based on your budget and tolerance for risk.
What’s Your Vehicle’s Year, Make and Model?
The make and model is another piece of important information that insurance companies need to know. The car’s make is the manufacturer’s name, and the model is a specific product line or vehicle. The model year is also important because cars are constantly evolving. The information is usually on the vehicle identification number (VIN) plate, dashboard, or owner’s manual.
How Many Miles Do You Drive?
Your annual mileage is a car insurance company’s most important factor in determining your rate. Drivers who drive fewer miles are at lower risk of filing an insurance claim than drivers who commute long distances, so they can often receive discounts. Make sure to provide an honest estimate of your annual mileage. You can use Google Maps to help you figure this out.
What’s the Primary Use of Your Vehicle?
Car insurance companies ask about various personal and vehicle details to determine the risk level for each driver. They want to know if you use your car for commuting or pleasure driving.
Driving daily to run errands and commute to work is a commuting vehicle. Pleasure vehicles are those operated on weekends for road trips and to see friends.
How Many Drivers Are in Your Household?
It is a key question when it comes to determining your rate. Household members that regularly drive your vehicles must be listed on your policy, and their driving records are considered when calculating your rate. If household members don’t have a license or do not plan to drive, they can be categorized as non-drivers and won’t affect your rates.
What’s the Status of Your License?
You will be asked several questions when you call to buy car insurance or go online. Be ready to submit information from your driver’s license, including your name, address, and date of birth. Be truthful; it’s against the law and may result in criminal charges to drive while your license is suspended. Plus, insurance companies can corroborate your information by looking at your driving record.
What Coverages Do You Want on Your Policy?
Car insurance isn’t a one-size-fits-all product. Insurers will ask what coverages you want on your policy. Depending on your needs, you may choose comprehensive coverage, which includes collision and glass coverage, or liability.
Ensure you have key info handy, including the year, make and model of your vehicle; details on accidents and driving records; the names of any household drivers; and your current policy documentation (for comparison). Married drivers typically get a discount.
Create a policy with your agent that satisfies your unique needs while having a premium, deductible, and policy maximum you can afford. Examples include liability, personal injury protection, uninsured motorist coverage, and collision and comprehensive. However, ensure you have enough coverage to protect your financial assets from a judgment.
Do You Have an Existing Policy?
Whether you have an existing policy to cancel or are buying a new one, the insurance agent must know about any previous claims or accidents on your driving record. They can use it to assess the level of danger you present. Talk with your agent about what you need from a policy to find the balance of premium, deductible and policy limits that work for you.