Your chances of finding cheap car insurance quotes multiply when you know what discounts you qualify for, how you get the lowest rates and who are the most competitive automobile insurers for your type of drivers. Read all about it here. You will be asked number of questions before providers can offer their best prices. So, knowing about these questions and their purpose can help you get the best coverage and price.
Below, we will discuss frequently asked questions when getting quotations. Your policy will be based on your answers. Correct and detailed information will allow vehicle insurers to offer accurate and low prices. Most of the questions are necessary to find out about you, your driving records, your car and coverage requirements. You should fill out the forms to the best of your knowledge.
A) Questions about Drivers to Be Insured : Personal details, experience, driving and credit history of the vehicle owner and listed drivers are the key to possible savings or rate hikes. These particulars determine if you are going to be categorized as high or low risk and get charged accordingly.
Your Age, Gender and Driving Experience
Personal information helps as driving behavior is affected by age, gender and experience. Your driving experience and number of recent claims will be the main factors in premium calculations. For example, most carriers offer better rates for women as they are considered lower risk.
Credit History of Policyholders
Lately credit history is very important in many aspects. It will affect mortgage, credit and loan applications as well as premiums. Usually, drivers with good credit are rewarded with discounts and it is harder to obtain good rates with bad credit. You will need to know if your credit score is good, fair or poor.
Almost every provider will want to know about everyone in driving age and living in your household regardless of them driving the cars insured or not. They could be included in the policy as listed drivers. If you have a teenage driver here is how to get the most economical insurance for young drivers.
If you live with a high risk driver your rates are likely to increase. Sometimes, this increase can be substantial that you consider driver exclusion on your policy. This may be allowed depending on your state and insurer. Excluded drivers may need to have their own automobiles and policies before companies will consider your request. For example, you can find affordable insurance for new drivers to prevent their effects on your rates.
It is important that specifically excluded people must not drive the insured automobile. They will not be covered under any circumstances and the damage they cause will not be covered. As the owner of the vehicle you may personally be responsible for damages and injuries they cause as well.
You should indicate if you own your home or your spouse owns it. Most auto insurance companies offer discounts to homeowners. You can save further if you bundle home and auto insurance. Remember to ask for sufficient liability cover to top up protection against claims on your assets due to a lack of cover. Third parties can sue you for damages and injuries suffered if your cover is exhausted.
Being married or single is important information as many vehicle insurance companies offer special rates for married motorists. Statistically, married people are less likely to get into accidents in comparison to single drivers. In addition, there are possible savings you can qualify for like multi-car or multi-policy discounts. You can possibly save more with multi-vehicle discounts but if you prefer you can have two separate policies and still save as long as both come from the same insurer.
However, your rates may be affected negatively if your spouse (or domestic partner) has a terrible driving record. In that case, you may be able to exclude your spouse from your policy depending on your state and/or insurer . This could save you money.
Members of certain professions can get cheap auto insurance depending on the state and insurer. That is why this information is needed and choosing a more appropriate job title can help you.
Your Social Security Number
Your SSN will be required to get accurate vehicle insurance rates. A social security number is needed by auto insurers when checking details like credit score and accident history. Usually, your information is kept secure. Some companies may offer rough quotes without an SSN number but will need it to finalise the deal.
B) Questions about Cars to Be Insured : Certain automobiles are considered higher risk due to speed capabilities, theft records and safety features. It is best to check the premium costs before investing large sums on a new automobile. Every auto has its insurance ratings that can be checked through the manufacturer or online. Getting quotes lets you know how well it is preferred by insurers.
The Main Use of the Vehicle
Your premium and type of policy would depend on how you use your vehicle every day. Most automobiles are used for “Pleasure and Commuting to Work/School”. When you use a car for commute, the risks are higher because of rush hour driving. If you are not regularly driving to work, then you probably have light use and may want to get pleasure use automobile insurance. Make sure that this use includes limited commute to work unless you have no intention of driving to work. Pleasure Only use may be selected by people who are working from home, retired or stay at home parents.
Many people use their personal automobiles for business occasionally. Most insurers allow policyholders to include light business use within their personal automobile insurance for a small additional premium. Also, your policy may already have limited business use depending on your state rules. The final option you can select is commercial use, which is different from commuting to work. This option is for vehicles used mainly for carrying goods, passengers and running business errands.
The longer you stay on the roads, the higher the risks of accidents. That is why premiums work out cheaper for low mileage drivers. Odometer readings on service records can tell how much you drive every year. If your mileage is likely to change due to retirement or moving closer to work you should discuss this with your agent to see if there would be savings. You may want to look into pay as you drive insurance if you are struggling to find affordable quotes due to a recent accident, traffic ticket or being a teenager.
Auto Ownership Details
Ownership details will tell if you have insurable interest on the vehicle. Many states will require ownership to be able to insure a vehicle. In addition, you may be required to buy Comprehensive, Collision and Gap Coverage when insuring automobiles purchased with loan or leased.
Does Your Automobile Have a Salvage Title?
Not many carriers like to take a chance with them. Some providers kindly ask this question at the start to tell you that they don’t do salvage vehicles. It is a bit more intricate to insure cars that were declared a total loss because of an accident, flood or other natural disaster.
Questions about Anti-theft Devices
These devices make it harder for thieves to steal your car and can make it easier to find a stolen one. Therefore many companies would offer inexpensive full coverage car insurance. Depending on your state, the following devices would qualify you for this discount; manufacturer installed alarms, glass VIN etching, keyless entry devices, motion detectors, fuel cut-off switches, ignition cut-off switches, door sensors, immobilizers and tracking systems. Many quote forms detect and automatically fill factory installed security devices.
Multi-car insurance policies can insure up to 5 vehicles on the same policy. In most states and through most providers you will be able to find such policies and possibly save handsomely on the overall premium costs. If this is the type of policy you like you will need to fill in details of all your cars in the same way above. Remember that you can select different levels of coverage for each automobile if you prefer.
C) Questions about Past and Current Auto Insurance Coverage : Policy lapses are frowned upon by most carriers and they will want to make sure you have been insured all along. Also, they will want to find out about your current arrangements to see what they are up against.
Existing Vehicle Insurance Policies
In most cases, motorists use their current coverage as a benchmark when they are seeking alternative quotations. You may like to have your current policy handy when you are filling out quote forms as they would include valuable information about your coverage and claims. It is always a good idea to revisit your policy and ask how much coverage do I need now? You may not realize but your circumstances can change fast.
Maintaining continuous coverage is a good indicator of a reliable customer and could save you money. Otherwise, you may be placed in a higher risk group if your policy has lapsed, especially in the last 12 months.
Companies check your claim record with previous insurers. They would ask about your claims and some may require proof. Also, they check your CLUE report to find out if you have ever been involved in an accident. Motorists with no recent claims in the last 3 to 5 years can achieve around a 30% rate reduction. Most people know how to get cheap vehicle insurance but not many stay on top of these issues to ensure maximum savings. Some policyholders don’t bother getting alternative quotes for years and those are the ones who can economize the most.
Current Policy Renewal Date
Everyone likes to know this date so that they know which date to aim for and, if you accept the quote, when you should be placed on cover. They wouldn’t want you to have a gap in your coverage as this can have serious consequences in case of accidents. You should make sure your new policy starts as soon as the old one ends. Find out what happens if auto insurance lapses.
Finding the Most Competitive Car Insurance Quotes
Most quote forms are similar to each other. Details required are slightly more or less. Some companies offer express quotes that are pretty close to the final premium demanded. However, quotations given without a proper check may be subject to change following discovery of new information or discrepancies on the details provided.
Most of the above discussed details are required if you want to get an accurate premium quote. Brokers ask for the same information too to shop on your behalf. You should also refresh your knowledge on how to shop for low rates because it is an essential part of buying the best value coverage. It is all about checking all your options in order to make a good policy and company selection. It only takes a few minutes of your time to carefully go through these steps and do it right. Making sure you don’t pay more than you should is another benefit of buying your policy attentively.