How To Compare Auto Insurance Quotes

Here we will show you how to compare auto insurance quotes for your car.

Comparing auto insurance quotes is necessary for landing a good deal. However, it is not an easy or straightforward task as some might think. Down below, we will share some tips to help you:

Know when to start comparing quotes

Comparing auto insurance quotes for a better deal is something you should do regularly. But it is an absolute necessity when you have gone through some major life changes such as getting married, having a new job, or move to another area. The make and model, as well as your driving record, are not the only factors that can have an impact on your car insurance premium. Your personal circumstances are also variables in insurers’ algorithms to calculate your rate.

Insurers believe that married drivers are more responsible while they are on the streets and they also file fewer claims; therefore, if you recently tied the knot, make sure that it is reflected in your premium.

It might sound strange to you that your occupation can decide your insurance premium but it does. Insurance providers associate some profession with higher risks and therefore raise the premium of people working in these fields.

If you have recently moved to another area, it can impact your car insurance rate too. For those who live in a neighborhood with a high crime rate, expect the premium to skyrocket since it will increase the risk of your car been stolen or damaged. And if you live farther away from your office, the rate will increase too because it means that you will spend more time on the road and face a higher chance of getting into an accident.

Gather the needed information

Car insurance premium is calculated based on individual’s circumstances and information. So prepare all the documents and data necessary on-hand whether you do your own research online or contact some insurers.

Each insurer might require different information but the basics are:
  • Your social security number
  • Date of birth: Your age is variable to decide your rate. Young or teenage drivers tend to face a higher rate since they are associated with the lack of experience. Older drivers have spent more time on the road and therefore have a certain set of skills to deal with difficult situations that might occur. The elderly, however, face a higher premium since insurers believe that their driving skills diminish with time.
  • Driver’s license number: Insurance companies use your driver’s license number to verify your stories. It is a fact that insurers charge reckless drivers a higher premium so many people might be tempted to cook their driving history to achieve a cheap rate. Once the insurers have had the information from you, their underwriters will run the number to see if there is any suspension, revocation, or infractions. Another factor that insurers car about is whether you have filed any claims. With your driver’s license number, they can find out about all of these in no time. 
  • Vehicle information: The make and model of your car are important to your auto insurance quotes. A sports car or the one with more horsepower is more likely to cause accidents if their drivers lose control of speed. These vehicles are also more expensive to replace or repair. 
  • Driving record information: Your driving record can speak volume about what kind of driver you are. If you have a not-so-clean history with tickets, moving violations or worse, at fault at causing accidents, expect your rate to increase vastly. The worst scenario is that some insurers might turn your application down if they think you are too much of a risk to insure. 

Familiarize yourself with insurance terms 

Insurance has specific terms that might cause some people a headache. Get to know them before you start comparing. Some of the terminologies to know are:
  • Deductible: The segment of a loss for which you are responsible, instead of the portion your insurance agency pays. Higher deductibles permit your insurance agency to bring down your premiums, as you accept accountability for a bigger measure of loss. 
  • Medical payments coverage pays for reasonable medical expenses or the event of the death of anyone included in the policy, regardless of fault. 
  • Liability coverage: Coverage that pays for loss or damages your vehicle causes to others.
  • Comprehensive coverage: Coverage that pays for the loss or damages of your vehicles caused by factors other than a collision with other vehicles. 
  • Collision coverage: coverage that pays for damages resulting from a collision with another vehicle or objects. 

Know your state requirements

No matter what you would like to add to your policy, it must align with your state’s requirement. Go to the website of the National Association of Insurance Commissioners (NAIC) to find out about what your state requires. It can vary from one state to another but most of them include liability coverage, both property damage, and bodily injury.

Know your credit score

Your credit score can have an impact on your premium. If you have a good credit history, use that to bargain for a cheaper rate and if you have a bad one, find insurers that do not emphasize on credit score. If your credit score is affected by factors beyond your control, you can file for an extraordinary life circumstances exemption to reduce its impact on your rate.

Ask for personal discounts

You might be surprised at the amount of money you can save with all the discounts. Some demographic discounts are for students, teachers, retirees, and government employees.

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