Each year in the U.S., about three million people are involved in car accidents. So having top car insurance is vital to protect yourself and your family.
But scouring through the various car insurance options can be stressful. Which is best? How exactly do car insurance quotes work?
While this might seem overwhelming, it doesn’t have to be! Read this guide on better understanding car insurance quotes today.
How Do Car Insurance Quotes Work?
A car insurance policy will often give you a quote for six months. It’s based on your driving record, marital status, and vehicle details. You can find car insurance quotes from various providers and compare them.
Remember that the quote you’re given is only as accurate as the information you provide. Quotes aren’t legally binding, and a poor driving record can increase costs.
Information You’ll Need
You’ll need the vehicle’s information, including the model, make, year, safety features, and annual mileage. The insurance company will ask if it’s being rented, financed, or leased. Many premiums will require collision and comprehensive coverage for financed or leased vehicles.
Your information, such as your zip code, occupation, and name, will be required. They’ll often ask for your social security number to view your personal information and credit history.
Have your driving record, including driving violations, accidents, and tickets in the last three to five years. Be honest since they’ll be able to view this information.
What Influences Car Insurance Quotes?
Your location has a large influence on auto insurance quotes. If you live in an area where accidents, vandalism, and theft are high, then premiums tend to be as well.
Urban drivers tend to pay more for car insurance than those in rural and suburban areas. Your credit history will also be taken into account. Higher credit scores normally mean lower rates.
Next, they’ll look at how much you drive. The more you drive, the more likely you’ll get into an accident.
Your driving history will be factored in as well. A clean driving record tends to mean a lower quote.
Those at least 25 tend to see a decrease in car insurance premiums. Young adults and teens tend to pay more.
Vehicles are important too. Vehicles with lower repair costs and higher safety ratings tend to lower quotes.
If you increase your deductible, then the insurance premium tends to be lower. Deductibles are what you pay before the insurance company does.
Coverage limits are the highest amount the insurance company will pay for a claim if your car is stolen or you’re in an accident. The higher the limit, the more your policy will cost.
Car Insurance History
First, they’ll look into insurance claims. Some companies will offer accident forgiveness to help you prevent a high increase.
They’ll also see if your insurance has ever lapsed. Even if you don’t have a vehicle during this time, you might be seen as high-risk. For times that you don’t have a car, you can consider non-owner auto insurance.
You might receive a higher quote if your previous insurance company isn’t largely recognized. Insurance companies will also see how long you’ve been with the last provider.
The Best Way to Find Car Insurance Rates
Online is one of the most convenient methods to find car insurance rates. Third-party websites can help you shop fast and compare multiple quotes.
You could also work with an independent agent. These agents work with multiple companies and can provide you with various quotes.
Captive agents are another option. Captive agents only work with one company.
How to Choose the Right Car Insurance
First, understand how much coverage you need. Each state will have its own requirements for minimums.
Consider how much of a deductible you can pay and if you’ll need collision and comprehensive coverage—factor in your current financial situation.
Once you know this information, look for quotes with identical information. Be truthful about all information to receive an accurate quote.
What’s the Most Affordable Insurance?
The most affordable insurance is constantly changing. This depends on the driver’s rating factors, ongoing rate filings, and more.
Each company will have its own system to weigh these factors. It’s best to speak with multiple insurance companies.
It’s best to receive quotes for the same amount of deductibles and coverage from each carrier. This will ensure that the more affordable options aren’t providing you with less coverage.
How to Lower Your Premium
See if there are any discounts available with your policy. Another option is to bundle your auto and home insurance.
You could adjust your comprehensive and collision coverage. Only do this option if you can afford to pay the amount out of pocket. Some companies offer programs and discounts for safe driving.
Online Insurance Quotes
It’s free to receive an online car insurance quote. Once you make a payment, some companies will let you bind the policy. Others might require you to speak with a representative first.
Better Understanding Car Insurance Quotes
This guide provides you with an overview of car insurance quotes. Take your time exploring various insurance companies and keep the coverage the same.
Are you ready to compare insurance quotes and find the right option for your needs? We can help!
Be sure to check out our insurance calculator today. You can check with at least three carriers to find the best quote for your needs. Just enter your zip and get started!