Questions about Car Insurance Rates
What’s most important to you? Low monthly premiums or high cash payout in the event that your automobile is damaged? Would you accept insurance if you knew no agent would be available on weekends or holidays? The car insurance business is all about betting on your risk as a driver.
The cost of your policy will be determined by complex mathematical equations that factor in your specific circumstances. The more risk you carry, the more you are likely to pay.
How many miles do you commute each day? Exactly who will be driving your car? Where will the car be parked at night? Is the car used for business or recreation? You might be tempted to be untruthful in your answers, or at least to underestimate the details.
The same powerful mathematical algorithms used to determine your rate are also used to determine the likelihood that your answers are truthful, so it’s in your best interest to be completely honest.
The information you get is going to make a lot more sense to you if you brush up on your basic insurance terms ahead of time. Run into a new word while browsing on the Internet? Google it in a separate window or tab.
The two big terms are deductible and premium, of course. A deductible is what you pay out of pocket before the insurance kicks in, in the event of an accident. The premium is what you pay every month—or every six months—to keep your insurance policy.
Often times, premiums and deductibles work in tandem with each other. For example, you may agree to pay a higher premium every six months in exchange for a lower deductible. It’s up to you to seek out certain discounts.
Are you a member of a special organization, even one related to your work? Are you a student of any kind? What does your driving record look like? Discounts are often given if an automobile has a theft-deterrent system or other safety features.
You may even get a discount if your car is parked under a garage at night. Once you’ve narrowed down your options to two or three companies, do some online and word-of-mouth research on what discounts could be available to you. Then, when you speak with an agent to finalize the details you’ll be well informed about the cost savings you could be eligible for.