Car Insurance: The Basics
Want to know what information you need to get a quote, or what factors go into determining a rate? Here are the basics.
How to get a car insurance quote
When you're ready to get a car insurance quote, we ask a few things about you, your car, and your driving history, as well as your current car insurance situation. Here's a quick rundown of what we might ask, where you can find specific information, and why it's relevant.
What we want to know about you:
- Name
- Address
- Birth date
- Gender
- Social Security number (SSN)
- How long you've had a valid driver's license
- E-mail address
Where you can find this information:
- Obviously, you know most of this stuff (if you need help figuring out your gender, you're on your own).
- Your SSN is often on your driver's license, or you may have a card with the number on it.
- How long you've had a valid driver's license. This means your permanent license — your temp/learner's permit doesn't count.
- We know you know your e-mail address by heart.
Why we need the information:
- Here's the scoop. To help determine how much to charge for auto insurance, companies group consumers together based on similar characteristics, such as age, gender, and driving record. The companies then rely on their actual claims experience within these groups to determine what to charge individuals with characteristics similar to others within the group.
- Your SSN is not required, but it does help us determine an accurate rate for you because we use it to review your credit information.
- Your e-mail address is used for future communication — don't worry, you can tell us your e-mail preferences.
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What we want to know about your car:
- How you pay for it (lease, own, or own and make payments)
- Vehicle identification number (VIN) OR
- Year, make, model and body style
- Safety equipment
Where you can find this information:
- You generally would know how you paid for your car. If your parents paid for it, you can ask them whether they lease, own, or own and make payments.
- Your car's VIN is on the driver's side of the dashboard in the corner near the windshield. It's a metal plate with a combination of 17 letters and numbers on it. It's also listed on the car's registration and title. It automatically gives us info about your car's year, make, model, etc. If you can't find it, don't worry — you can continue your quote if you just enter your vehicle's year, make and model.
Why we need this information:
- Basic information about your car tells us what it's worth. Newer cars tend to be more expensive to insure.
- Other factors included in what kind of car you drive include the replacement cost, how often that kind of vehicle is stolen, and what kind of safety equipment it has, such as air bags and anti-lock brakes. This helps us determine how likely it would be for you to file a claim, and how much it would cost us if you did.
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What we want to know about your driving history:
- How many violations (speeding tickets, breaking traffic laws) you've had
- How many claims (accidents, theft) you've had, whether or not they're your fault
Where you can find this information:
- Tickets and violations usually are pretty unpleasant — chances are you'll remember them. Usually, a general idea is enough information. If you get the right year and month and an approximate day, it will help us give you an accurate quote. Try and think of the season when the violation occurred, to help you remember the date.
- Don't bother including parking tickets — they don't count.
Why we need this information:
- Your violations history is an indication of your driving behavior. If you frequently speed and break traffic laws, you have a pattern of behavior that suggests that you're more likely to get in an accident, which could cost us money.
- Claims are used like other factors — your past experience helps us determine your likelihood of having a claim in the future. Accidents that are your fault have a direct effect on your rate, while accidents that are not your fault might cause us to place you in a group of customers that receives higher rates.
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What we want to know about your current insurance policy:
- Insurance company name
- Limits of liability (how much your current company pays for certain coverages) you chose
- Policy expiration date
Where you can find this information:
- Each insurance policy has a "declarations page," which lists information about your coverages and limits. You should also be able to find your policy expiration date there.
- If you can't find your declarations page, you can provide your best guess on these factors; your quote will be pretty accurate if your guesses are close to your actual limits.
- If you don't have previous insurance, your rates most likely will be higher, but you can still get a quote.
Why we need this information:
- If you had insurance with another company, we consider it less of a risk to give you insurance.
- The limits you chose for your current policy help us determine what group of customers to place you in to help determine your rate.
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Other stuff that affects your rate:
- Discounts
- How you bought your policy
- Billing
What you need to know about this information:
- We don't offer discounts for good grades or taking a driver's ed class. Some other companies do offer these discounts, but that doesn't necessarily mean they'll give you a lower rate. You should visit their Web sites to see what discounts are available and if you qualify.
- You may get different rates from an agent/broker than you would if you bought online or over the phone, depending on our cost of doing business. Because each customer's rating factors are different, we can't tell you which way of buying would give you the lowest rates, so you should explore each option if you're interested.
- The bill plan you choose after you buy your policy will affect your rate. We offer discounts for customers who pay their bills in full, and we also offer lower fees for customers who pay their bills electronically.
How this information can affect you:
- You should explore information about discounts before you buy your policy — because they could lower your price.
- You need to choose a buying method that's convenient for you.
- You should decide what bill plan suits your current financial situation, but you can save money if you choose to pay in full or sign up for electronic payments.
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