Little Known Facts About Car Insurance Quotes
If you’ve already submitted an online form for a car insurance quote, then you know that the numbers you get back on your quote can be very different from each other. Have you ever wondered on what your quote is based? Read on to discover some interesting facts about car insurance quotes!
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.
After all, the cost of your policy will be determined by complex mathematical equations that factor in your circumstances. The more risk you carry, the more you are likely to pay. It’s in your benefit to be completely honest, however. The same powerful mathematical algorithms used to determine your rate are also used to determine the likelihood that your answers are truthful.
State governments are heavily involved in regaling the car insurance industry. These regulations are designed to protect consumers. You’ve probably heard about insurance fraud, and when states work to prevent it, you save in the long run. States may choose to regulate your premiums.
Even a high-end car with special safety features is going to cost more to insure than a mid-range car. This is because the safety features don’t make up for the cost for insurance company to replace or repair your high-end car. If you can afford a higher premium, then by all means purchase your dream car. But, if the car payments, the taxes, and the maintenance are already at the top of your budget, you probably should look for a vehicle in a more reasonable price range.
Bundling usually means getting your auto insurance with the same company as your home owner’s insurance. This practice can save you quite a bit. It also means you only have to deal with one company for payments. In places where it may be difficult to obtain home owner’s insurance, a company is less likely to drop you if you also have the auto insurance with them.
Add-ons were created for people in certain specific circumstances. For example, you may be interested in road side assistance. Some companies offer accident forgiveness, meaning that one small fender bender won’t cause your rates to increase. If you happen to still owe quite a bit of money on your vehicle, you might consider gap insurance. If you total loss your car, the amount of money you get from your policy may not be enough to purchase a similar car, unless you have purchased gap insurance.