Automobile Insurance Quote
The first step in acquiring car insurance is to obtain quotes from several different insurance companies or agencies. This will allow you find the best coverage at the lowest price possible. There are several things that are taken into consideration when an insurance company prepares a quote for you.
You will need to supply several pieces of personal information before an insurance company can provide you with an accurate quote. Besides your mailing address and the address where your vehicles are kept, you will also need to supply the following information for anyone that will be included on your policy:
- Full name
- Gender
- Social Security number
- Date of Birth
- Employer (occupation)
- Drivers license number
- Education level completed or current education level and GPA (if still attending school or college)
- Marital status
- Credit history or credit report
The information above is used to determine several aspects of your insurance quote. Some companies offer discounts for good grades or being married. Usually, a department of motor vehicles (DMV) report will be used to determine you're past driving history. They want to know if you are a safe driver or if you are someone that should be considered high risk. Some companies will use your credit history to determine how likely you are to pay your premiums on time. A bad driving history or credit report could result in higher than normal insurance premiums or they could keep you from obtaining car insurance altogether.
You will also need to provide specific information for each vehicle that you want to insure when asking for an auto insurance quote. This information includes:
- Vehicle year, make, and model
- Primary driver
- How many miles the vehicle travels each year
- Is there a lien on the vehicle from a lending institution or is the vehicle leased?
- Desired deductible
- What is the vehicle most commonly used for (commuting to work, leisure, or is it a vehicle used for business purposes)
- Is there a lean on the vehicle from a lending institution or is the vehicle leased?
- How many miles do you travel each way to go to work
This information is used to determine the amount of insurance required each vehicle. The year, model, and make help determine the value and safety rating of a vehicle, both of which are key in determining they type and amount of insurance that is required. The person driving the vehicle can affect insurance premiums, especially if they have a bad driving history or if they are a young or inexperienced driver. The number of miles traveled by a vehicle and the primary usage of that vehicle are used to determine the amount of wear and tear that it is subject to yearly. Having a lien or a lease on a vehicle usually requires the insured to carry additional coverage, such as collision or comprehensive.
One thing to keep in mind is that every insurance company uses a different formula to calculate their premiums. Therefore, even though you might think you are getting a really great deal, there is a very good chance that you can find the same coverage at a lower rate elsewhere. Getting quotes from several insurance companies before you purchase your auto insurance could save you hundreds of dollars a year.
There are many auto insurance companies out there to choose from. Don't limit yourself to the first one you come across. Do some comparison-shopping by obtaining quotes from several of them. This will allow you to determine which company can offer you the best possible rates and coverage for your insurance needs.