When you request a car insurance quote, you will face many questions designed to determine how much risk you are to the insurer. The questions can seem invasive, but they are a normal part of the auto insurance process, and if you don’t provide enough information, you won’t receive accurate information on rates. Make things easier by preparing to provide the following details.
Questions your auto insurance agent will ask
Where do you live?
Are you familiar with the phrase location, location, location? This is a phrase that originated in the real estate industry but applies to car insurance as well. Essentially it means that the price of something is dependent on where it is located.
When insurance companies determine the cost to insure a particular vehicle, they consider the state in which it is registered as well as your Zip code. City residents generally pay more for their insurance than those who live in rural areas, and suburban residents fall somewhere in between. The reason for this is that you and your car are likely to encounter much more traffic and potential for accidents in congested areas. Your exposure to potential auto theft and vandalism also increases.
Instead of simply assigning greater risk to residents of metropolitan areas, auto insurers actually take a look at the car insurance claims in your zip code and surrounding areas. The claims rates can vary greatly in neighboring Zip codes, which means you could pay more for your insurance than someone who lives right down the road.
Do you own your home?
Home ownership may seem completely unrelated to auto insurance, but you will be asked if you rent or own the place where you live. Viewed as an indicator of stability, ownership may mean that you will pay less than a renter. If you currently rent, make sure to notify your insurance company if you eventually purchase a home.
Are you interested in bundling your home and auto insurance?
Companies that offer home and auto insurance also will offer you a discounted rate when you bundle your policies. If you own a home, this is a great way to save additional money. Rarely will you benefit financially from having policies from different companies.
What vehicle are you insuring?
Provide details about the make, model and year of the car you are insuring. If you proceed with securing coverage, you will need to provide the vehicle identification number (VIN) as well. Insurance companies will factor in the cost of the vehicle and its parts, safety ratings and price when determining your premium. Cars that have safety features such as parking assistance, rear-view cameras and stability control reduce the chance of accidents.
Does your car have GPS or other location tracking technology?
Vehicles that have GPS or other location tracking technology are lower to insure, as there is a greater chance that they will be recovered if stolen. Tracking systems can pinpoint your vehicle and often track it in real-time, providing valuable information that can be used by police to retrieve it. If you have signed up for a vehicle tracking service, make sure to inform your auto insurance provider.
Do your own or finance your car?
If your car is leased or financed, the lending institution will require you to have comprehensive and collision coverage on top of liability insurance. Drivers who own their car outright have the option to purchase more coverage but are not required to do anything more than state law requires.
What is the car’s primary use?
Certain types of driving such as daily commutes to work or school put your car at greater risk for accidents. Explain whether you will be using your car primarily for recreation such as weekend drives and trips to the beach, business or for getting to and from work.
Who lives in your household?
Due to the omnibus clause, members of your immediate household are automatically insured under your policy. Their driving records will be reviewed along with yours. Additionally, if you live with teen drivers, this will be factored into your premium, as they are considered riskier to insure.
How is your driving record?
Your past driving activity is a good predictor of the risk you pose as a driver. Insurance companies will want to see your motor vehicle report so that they can determine your level of risk. The more instances accidents and violations that you have, the higher you can expect to pay for future insurance.
What coverage are you seeking?
This question is likely one of the most important for you as a driver. Discuss liability, collision and comprehensive coverage as well as any specific needs you may have so that you secure the best protection for you and your vehicle. Find out about roadside assistance as well, so you are prepared during an emergency.
Insurance companies pose many questions when you request an auto insurance quote. This is so they can assign risk and offer discounts where applicable. During the process, remember to ask questions as well so that you can secure the exact coverage you need.
Do you have all the auto insurance coverage you need? Visit AAA.com/Insurance to see all the options available from AAA.