10 Things You Should Know About Buying Auto Insurance

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One of the most important things you need for your car is insurance. You never know when an accident can happen, it does not matter how safe of a driver you may be. But fret not, as it is easier than ever to get quality auto insurance. After reading this article, you will be knowledgeable about affordable auto insurance companies, auto insurance solutions, and the best auto policy rates. You will know everything necessary about auto insurance!

If you need insurance, an auto insurance agent is your best bet. They are all over the country, so finding one is easy. Many of these companies provide auto insurance quotes for new drivers. As you a new driver, you will have many incentives for safe driving, and discounts are available for you as well. You may be wondering, can you insure a car online? This article will answer that question for you. Having auto insurance is mandatory for anyone who owns a car. Without it, you will be paying more out of your pocket for your vehicle. Having an accident is never a good thing but having auto insurance is. Protect yourself and your car with quality auto insurance. So, without further ado, let’s get into the list.

  1. How is Your Insurance Rate Determined?

    There are two factors that determine what you pay for auto insurance, one is underwriting and the second one is rating. Actually, prior to acceptance of applications, insurance companies underwrite to assess the risk factors involved in the application of one particular applicant or in group of applicants. After getting the results of underwriting, most of the companies assign their rates. Once the rates are fixed, you will not need to assume the cost responsibility for claiming your potential claims.

  2. Each company adopts its own rating system, although there are general guidelines that all companies follow:

    It is said that claim frequency is the biggest influencing factor involved in the rating process. It does not count the number of claims rather it means that how often the insured event occurred within the group having a big number of policies. Mostly, high group claims, are charged more money for insurance coverage.

  3. Specific Factors that Affect Your Rate:

    1. Your Driving Records:
      Those drivers who violated the driving rules or had serious accidents are supposed to be at high risk.
    2. Your Geographic Territory:
      The claims of ruler areas are less in numbers than the urban area.
    3. Gender and Age:
      Males have more chances of accident as a big ratio of them drives the car. Certain age groups have more claims as per the available statistics.
    4. Marital Status:
      Married people or couple have low ratio of claims
    5. Prior Insurance Coverage:
      It is applied when you had been cancelled for not paying the premiums.
    6. Vehicle Use:
      The result of higher mileage shows more exposition to risk
    7. Model and Type of your vehicle:
      Sports and Luxury cars have higher number of claims.
  4. Ask Your Agent About Discounts:

    Insurance companies offer you the discount when you are at the better risk. All states do not offer the discounts but you should look for some benefit in the following categories: dividends, safety devices, anti-theft devices, low mileage, good driver/renewal, multiple vehicles, driver education courses, good student, and auto/home package. Hence ask your agent whether you qualify for the discount or not.

  5. Check Into Optional Coverage:

    Generally, there are two common types of coverage comprehensive and collision. Comprehensive coverage covers fire, vandalism, severe weather, theft, flood, broken glass, and damaged windshield. And collision coverage covers physically collision with another car. Comprehensive coverage is inexpensive from collision coverage and this is also optional. Besides, other optional coverage includes rental reimbursement coverage, towing, and labor coverage and medical payments coverage.

  6. Where to Go for More Information:

    Consumers can get the information from plenty of sources like public libraries, departments, online resources, consumer groups, consumer publications and state insurance. Every State insurance department as appointed a person addressing the queries related to auto insurance. Hence, he could be a good and authentic source of information.

  7. Shop Around Before You Buy:

    Prior to opting for the auto insurance, try to contact as much companies as you can. When you speak to their agents provide them same information for your insurance plan. Following this, ask for quotation prices and note them down. Mostly agents ask the following questions:

    • your driver’s license number
    • description of your vehicle
    • its use
    • the number of drivers in your household
    • the coverage and limits you want.
  8. Where to Shop:

    Try to find bunch of newspapers and yellow pages. Find out the numbers of companies and agents of your local area. Apart from this, ask your all friends about the best companies and agents for your new auto insurance and get all necessary information.

  9. For Your Protection:

    Prior to signing the application form provided by the companies or their agents, make a call to State insurance department and ask the personnel that whether the agent or company you are purchasing the insurance are licensed or not. It is totally illegal to get insurance coverage from unlicensed companies or agents. Hence, take serious note of this.

  10. Read Your Policy Carefully:

    Insurance policy is a kind of legal document and it contains every detail about your rights, claims, policies etc. Hence, it is highly recommended that prior to submission of your application; try to read all the details given in the policy. If you think you do not understand the policy, make a call to agent for clarification. If you still have doubts, do not hesitate to call your state insurance department for understanding the policy.

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