An auto insurance policy is a legal contract that has been entered into by two parties; the insurance company and the insured. The insured person agrees to pay a premium to the insurance company. In return, the insurance company will pay for financial losses incurred from certain covered perils. It could be because the insured hit a deer, had his or her vehicle stolen or vandalized, or been involved in a collision. When insurance companies calculate their auto insurance premiums, it is almost like having to put together a jigsaw puzzle. This is because they use a variety of factors to come up with a final amount. Without even one of these ‘pieces’, an accurate and complete insurance rate cannot be developed.
When you get free car insurance quotes, your insurance company will ask you a multitude of questions before they give you a final premium amount. They will want to know your age, how long you have been a licensed driver, and if you have ever had insurance before. The type of automobile will play a huge part in what you will be charged for your insurance policy. The claims experience of certain makes and models help to determine insurance rates as well. Some vehicles are stolen or vandalized more than others, and some are involved in accidents more. The more you use your automobile, the higher your chances of being involved in an automobile accident. This is why you are asked if you use your vehicle to go to and from work or if you use it for pleasure.
What most people don’t realize is how where you live and park your vehicle can greatly influence your premiums. If you live in a larger city instead of a small town or rural area, your rates will be higher. This is because in a larger city, there are more people and more cars; the chances of being in an accident or having your vehicle stolen will increase. Not only that, but it matters where in the city you park. In order to lower your rates, you are encouraged to park in well lit areas or in secure garages. These two actions act as deterrents to would be thieves and vandals. This may qualify you for auto insurance discounts.
There is a lot of information to digest when you get car insurance quotes, but the experience doesn’t have to be confusing and frustrating. Ask you agent a lot of questions, especially if you want to lower your premiums. Inquire about auto insurance discounts that you may qualify for. Disclose all pertinent information as you never know what discounts you can apply for.