SIX Things You Should Know About Buying Auto Insurance

1. How is Your Insurance price Determined?
There are two factors which determine what you pay for Auto Insurance Policy. The 1st factor is underwriting and the 2nd factor is rating. Insurance agencies and companies underwrite to assess the risk factor associated with insurance holder, group with other similar risks factor and decide if the insurance provider will accept the application.

2. Specific Factors that Affect Your insurance premium.
● Previous Driving record – drivers with previous accidents or are violations considered to be higher risk factor
● Geographic territory – urban areas have more insurance claims than rural areas
● Gender and age – Scenario says that males have more accidents; certain age(20-45) groups have more claims
● Marital status – married people show lower rates of insurance claims
● Previous insurance coverage – if you have been cancelled for non-payment of premiums
● Vehicle use – higher annual mileage results in higher vulnerable to risk
● Make and model of your vehicle – sports and luxury cars average a higher number of insurance claims

3. Check Into Optional insurance Coverage
The most commonly encountered insurance coverage’s, in addition to the basic liability package, are collision coverage’s and comprehensive coverage. Collision package benefit pays for physical damage to your car as a result of your vehicle colliding with an object such as a tree, house or another vehicle. This is expensive coverage and is not required by any Auto insurance law. Comprehensive insurance coverage pays for damage to your vehicle from almost all other causes, including fire, vandalism, severe weather, theft and floods. This coverage will also cover windshield damage and broken glass. Comprehensive insurance coverage is less expensive than collision insurance coverage.

4. Shop Around Before You Buy auto insurance
When shopping for vehicle insurance, quotations, premium are a useful tool for comparison of companies’ products. When asking for declaration, it is important that you provide the as it is same and true information to your agent or company. The agent will normally request the following information: description of your car, car use period, driver’s license number, number of drivers in your household, the limits and coverage’s you want.

5. For Your Protection
Once you have selected your need and an insurance agent or a good company, there are some steps you can take to make certain you get your money’s worth. Before signing an insurance application call your state insurance authorities or department and verify that the company entity and the insurance agent are licensed to do business in your state or your area. It is absolutely illegal for unlicensed insurers to sell insurance, and if you purchase insurance from an unlicensed insurer, you have no guarantee at all that the insurance coverage you pay for will ever be honored.

6. Read Your Policy documents
You should be know that a vehicle insurance policy is a legal contract. When you purchase vehicle insurance, you will receive a policy documents. You should read that policy documents and make certain you understand its contents and details. If you have questions or doubt about your insurance policy wording, then your insurance agent or company is responsible for clarification. If you still have questions, and not satisfied with the answer then you can turn to your state insurance department.
So insure your vehicle and stay happy.
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