When you request a car insurance quote, the insurance agent will ask you many questions. Some questions can seem invasive, but they are a normal part of the process and are needed to provide you with the best coverage and rate. Make things easier by preparing to provide the following details.
Questions Your Auto Insurance Agent May Ask
Where do you live?
When insurance companies determine the cost to insure a particular vehicle, they consider the state in which it is registered as well as the ZIP code. City residents generally pay more for their insurance than those who live in rural areas, and suburban residents fall somewhere in between. This is because you are more likely to encounter an accident in high-traffic areas, and are at an increased risk for theft and vandalism.
Instead of simply assigning greater risk to residents of metropolitan areas, auto insurers look at the car insurance claims in your ZIP code and surrounding areas. The claims rates can vary greatly in neighboring towns, which means you could pay more for your insurance than someone who lives right down the road.
Do you own your home?
Homeownership 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 will offer you a discounted rate when you bundle policies. If you own a home, this is a great way to save additional money. Speak to a AAA insurance agent to learn more.
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 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 mandates.
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?
Auto insurance policies typically cover individuals who live in the same household with permission to drive the insured car. If you live with teen drivers, this will also 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 of accidents and violations you have, the higher you can expect to pay for future insurance. Depending on the state where you live, you can take the AAA Defensive Driving Course to reduce points from your license and may qualify for an auto insurance discount.
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 learn about the options available from AAA.