Frequently Asked Auto Insurance Questions

Most motorists have one or two car insurance questions in their mind. They may have heard something and want to confirm if it is true. They may not understand a clause or term in their policies. Either they assume it they know the answer or never had a chance to ask. So, here is some those questions.

Can You Really Save 15% on Vehicle Insurance?

This is a popular promise made to them and many owners are skeptical about it. Interesting thing about this question is that it is very easy to find answers for. Nonetheless, people seem to ignore it when it is their time to find out. Before they know they go ahead and renew policies with their current provider and it is left for another term.

There have been various studies on this question. We have done our own research and found out that the premium difference even between two of the top ten vehicle insurance companies can be as much as $1000. So, why would you leave $1000 on the table when you can save it?

Like everyone has a different taste in life, companies are the same. Some car insurers like and insist on good drivers with perfect credit history and safe automobiles. They would offer their best rates to such applicants and they would jack up their prices for drivers with chequered records.

On the other hand another company would admit that they would have a hard time winning over good drivers and they would concentrate their efforts on signing on below average applicants.  So, you would want to choose company A if you have a brilliant driving history and Company B if you are struggling to get good deal from top insurers.

How Much Do Accidents and Tickets Affect Your Renewal Premiums?

This is something many unlucky drivers cannot wait to find out. If they have just had a claim or a traffic violation ticket, they would be cursing themselves for many reasons including what it would do to their good rates.

There is no doubt that most carriers would make you pay for the claim you submitted. This is one of the reasons why many people prefer to pay a small damage out of the pocket and get on with their lives.

The reason your insurance costs would go up is because you would lose your good driver discounts. These could be between twenty and thirty percent and a bit less for minor traffic tickets. Not being able to save “no claim” means you cannot get the best quotes.

How Much My Car Affect Insurance Rates Charged?

We need to get one thing out of our system. That is the color of automobiles has no effect on cost of insuring them. What really important is the safety and security features that come with it. If it is harder to steal it and it protects its passengers well in accidents those cars will be well liked by insurers.

If a firm is likely to pay less on claims due to the features of the automobiles insured they would want to charge less. Lower risk means less premiums. In the same way, some cars are more dangerous and often stolen and they would get hit heavily by insurers.

Why Do Companies Look at My Credit Score before Giving Quotes?

This is a controversial subject and many policyholders don’t agree with financial scrutiny. Unfortunately, most firms believe that there is relation between your financial position and likelihood of making a claim. When companies understand and prove this point there is no way of stopping them to consider credit score on premium calculations. Majority of states allow this practice to go on as well.

If you have a poor credit score you need to shop around a little harder to find a company that will offer you affordable rates despite it. Some companies look at the figures with full intention while others don’t weight their importance as much.

Where Can I Find Answers to My Questions?

The obvious source of information is your broker and agent. If you don’t want to bother them there are a few good blogs and forums online where you can read or ask your questions. You may need to dig a little and read at least couple responses. But it is better than leaving them answered. Believing in myths is actually worse than not getting to the true information.


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