8 Auto Insurance Questions That Determine Your Policy Price
Auto Insurance can be confusing and complicated, but here are 8 common auto insurance questions people need to consider when buying auto insurance.
Whether it’s a family mini-van or a work truck, every vehicle must have some form of insurance.
There are a lot of insurance companies out there and different types of coverage options, so how do you know which is best for you?
Read on for a list of eight questions you should ask when buying auto insurance to help you get the best coverage for your money.
How Much Do I Drive?
Is The Vehicle For Work, Personal, Or Both?
Does The Vehicle Type Make A Difference?
Are Premiums More Expensive In Higher Risk Areas?
Can I Cover Everyone Who Drives My Car?
What Is The Law In My State?
Does It Matter If I Own Or Lease My Vehicle?
What Else Could Affect My Auto Insurance?
1. How Much Do I Drive? Do you absolutely need your car every day—for instance, to commute to work or drive the kids to school and activities? Do you drive 100 miles a month or closer to 1,000 or more? Make sure your policy reflects how much you use your car. If you don’t drive a lot, you may want to opt for mileage-based insurance.
Whether it’s for business or personal matters, most people drive their vehicles every single day. If you drive a lot, your policy price might be higher than you think. Find out if you can opt for a mileage-based insurance plan if you drive very little to save money on premium costs. If you drive a lot, expect your price to be higher since the odds of an accident increase the more you drive.
2. Is the Vehicle for Work, Personal, or Both? Some people use their personal vehicles to conduct business as well. If this applies to you, find out if you’ll need to get a commercial auto insurance policy. Your personal policy won’t cover you if you transport customers and clients for any reason. If you use your vehicle for any kind of business or commercial-related activity, you’ll need to supplement your plan with a commercial policy.
3. Does the Vehicle Type Make a Difference When Buying Auto Insurance? You may have heard that red, flashy sports cars cost more to insure. While it’s not always about the color or style, the type of vehicle you drive does influence your coverage costs. Some vehicles simply cost much more to replace depending on the size, make and model, and other factors.
If you drive a classic car or a rare high-dollar vehicle, expect to pay more for your monthly premiums. Some modified vehicles and heavy-duty work trucks might also cost more to get full coverage, so be sure to ask in advance.
4. Are the Premiums More Expensive in High-Risk Areas? When buying auto insurance, most providers take your zip code into account, and this is because they can pull car theft statistics. The higher the car theft numbers are where you work and live, the higher your premiums will likely be. To reduce your cost, let your provider know about any anti-theft devices you have in your vehicle. If the car or cars are being stored in a secure area such as a locked garage or secure parking lot, let them know since this may also reduce your premiums.
5. Can I Cover Everyone Who Drives the Car? Depending on the purpose of your vehicle, you may need to inform your insurance company about every single person who drives it. Anyone who drives the car on a regular basis needs to be included in the policy for their protection as well as yours. If you’re insuring a work vehicle, let the provider know that only official employees are authorized to drive it. The insurance company may offer special pricing on company vehicles that cover several people under one blanket policy.
6. What is the Law in My State? Every state has its own set of insurance laws, but each one will require you to at least have some kind of minimum liability coverage. Find out what laws apply to you and your vehicle depending on where you live. An insurance agent should know the current laws and can guide you through the process when buying auto insurance. Just make sure that your coverage is within the legal guidelines so you can avoid potential headaches (and possible fines) in the future.
7. Does it Matter if I Own or Lease the Vehicle? If you’re still making payments on your vehicle, you’ll need to get what’s called “full coverage.” This type of auto insurance covers you for the full market value of the car in case it gets totaled in an accident. This type of policy is also called comprehensive coverage. However, if your vehicle is paid for and you currently have the title, you might only need liability insurance. You can fill in any gaps with supplemental coverage in case you want to be able to recover the replacement cost if your vehicle is paid for.
8. What Else Could Affect My Auto Insurance? There are several other factors that come into play when buying auto insurance. Things like how long you’ve been driving, your age, and even your gender may affect your rates. If you have a clean driving record, your premiums will be lower than if there are a few dings from your past. Even things like your credit score or your business’ credit rating might have an impact on your policy costs and coverage levels. Talk to an experienced insurance agent who can help you find the right policy for your needs. Insurance Shopping Made Easy
Once you know which questions to ask when buying auto insurance, you’ll be better prepared and protected. Let your agent know about any perks like a great driving record, excellent credit, and if your vehicle will be stored in a safe place. Shop around for the best rates before you commit to an auto insurance policy. Make sure that the policy you choose will provide you with the coverage you need in the event of a collision or other incident.
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