Learn What Drives Your Rate
It starts with you. Your application for a quote begins with basic questions about your age, sex, marital status, driving record, and the cars you drive. Why so many questions? Each one helps insurers predict how likely you are to have an accident or continue your record of safe driving. Plus, many discounts are based on your answers, so the more info you provide, the more you can save.
Before you buy a policy, your company will verify your driving record and claims history. If permitted by law in your state, and only if you grant permission, your credit history will also be factored into your rate.
Where You Live Matters
Urban, suburban and rural rates are quite different. It’s all about dangerous intersections, over-crowded freeways and vehicle theft rates. If you’re lucky enough to live in the country where there are usually fewer crashes and car thefts, your rates will be relatively lower. Some states put limits on how high urban rates can go, while others require companies to focus primarily on your driving record, annual mileage and the number of years you’ve been licensed.
What and Who You Protect
If insurance is mandatory, why doesn’t everyone have it? By law, if you own a car, you usually can’t renew your license or registration without insurance. But, mandatory insurance laws are not strictly enforced in every state, leaving you unprotected against an uninsured driver. And, the minimum limits in many states are so low that there may not be enough coverage to pay for your injuries. Always buy UM/UIM coverage to protect yourself and your passengers.