Here's what you'll need: Driver Information - Age, marital status, gender, and driving history are all examples of driver information used for rating. Such information is used to evaluate the risk of the driver which, in part, is used to determine rates.
Vehicle Information - Year, make, model, and garaging address are all factors which indicate the value and risk of the insured vehicle. This is especially important when the vehicle itself is insured for property damage and theft.
Coverage Desired - The coverage chosen directly affects the price of the policy. Generally speaking, the more coverage and higher limits desired, the higher the premium will be.
Basic Advice for First-Time Auto Insurance Buyers: Buying your first auto insurance policy is a big decision that may feel intimidating at first. You need the state minimum coverage, but what else does your policy need to cover on top of that? How much coverage can you afford? Which insurance company is the best? Don’t worry about all the big questions; we’re here to help you with your first-time decision.
If you’re a young driver who has been on your parents’ insurance policy since you started driving, sticking with the same insurance company may be a good place for you to start. Get a quote from the company your parents use as a point of comparison for other auto insurance prices. Sites like GetMyInsurance.com allow you to compare the rates of several auto insurance companies side-by-side, so you can see all the features you’ll get for your monthly premium.
Next, it’s a good idea to familiarize yourself with common terms used by auto insurance companies. What is liability coverage and why do you need it? What does comprehensive insurance cover? Is collision coverage only for car accidents? How do deductibles work?
Car insurance can be expensive, especially if you’re a student or living on your own for the first time. But keep in mind that paying the lowest monthly premium doesn’t always mean that you’ll save the most money in the long run. Low premiums usually mean a high deductible, which means a bigger out-of-pocket cost for you if you’re in an accident or your vehicle is otherwise damaged or stolen. There are better ways to save money on auto insurance than just choosing the cheapest policy you see. If you’re a college student and get good grades, you can qualify for a good student discount if your insurance company offers it. Insurance companies may also offer discounts for going accident-free for a number of months or years or taking a driving class to improve your road skills. Talk to your insurance agent about other ways you can save on your policy.
Auto insurance is a big decision, but it doesn’t have to be daunting. Use the online and family resources available to you to help you make the best decision for your driving needs.