Do you confuse auto insurance? This is not surprising as many people do.
In a survey conducted by The Zebra, only 21 percent of survey respondents passed a test when it found out what insurance companies use to determine rates.
And not knowing the ins and outs of your policy can cost you dearly. Understanding the quirks of car insurance can help you save on it.
Insurance is shrouded in mystery, so it is misleading and it is not normal to fully understand what covers you have or do not have.
But we will tell you why insurance companies (including covers) ask you some questions during the quoted process to get an accurate car insurance rate.
Here’s a brief overview of the cover app and what you’ll see when you receive an auto quote.
First Up: Your Driving License
Insurance companies use your driving license to learn about your driving record and claims history. They get this information through two reports: MVR and CLUE.
Through these reports, insurance companies can find out if there is any suspicion or violation on your driving record. They can view any claim filed under your name. All these factors can have an impact on your rate.
A clean driving record will only benefit you in achieving a lower rate. Being involved in accidents (no matter how minor) and filing claims is seen as reckless behavior and will increase your rate.
Our entire quotation process only takes five minutes. But to save you more time, you can scan your driver’s license in the app. From there, it will autofill your basic information as well as other details for later questions.
Your ZIP Code matters more than you think
Where you live and where your car is kept affects your car insurance rate.
Insurers take this into consideration because there may be a higher crime rate in your area, especially general or auto theft. Or maybe there are a ton of people in your neighborhood. More people and more cars mean that accidents are more likely to happen. It may also be that your area has seen an increase in the number of recently filed claims.
If all these things exist, the insurance companies will keep this in mind to expect you to file a claim. You will see a higher rate.
Are you a happy homeowner? Tell insurance companies
It is beneficial for you to indicate that you are a homeowner.
Some insurance companies give discounts on your auto policy because you keep your home. And you can potentially bundle your home and auto policy under the same company to get a multi-policy discount.
How long have you been driving
You may have got your license as soon as possible and you may have waited until a little later.
Insurance companies want to know how long you have been driving to get a gauge on your skills. The more driving experience you have under your belt, the lower your premium.
As you become an experienced driver, you are more exposed to different scenarios and you will be able to react to the situation quickly and accordingly to avoid accidents.
Your education and business can give you a discount
Staying in school will give you a lower premium. And some businesses will get discounts, such as if you were in the military.
It is important to maintain insurance
Having continuous coverage means that you are at a lower risk than those who have missed coverage.
Sometimes, a lapse in coverage can increase your premium by 12 percent. And sometimes insurance companies do not insure you because of a default in coverage.
Research is weak at best, but insurance companies still rate drivers based on their relationship status.
On average, married couples have a 12 percent lower premium. Widow and divorced drivers also see higher rates.
You drive, but exactly how much?
In the states, the average annual mileage in the states for a driver is 12,000. If you drive anywhere between 0 and 7,500 miles a year, you are considered a low-mileage driver and you will usually pay less for insurance.
The less time you spend driving on the road, the less likely you are to be in an accident and have to file a claim.
How much do you want to be protected?
Liability insurance covers the costs of injuries and damages that you can incur on other people and their property when driving.
Every state has laws on how much liability insurance is required to drive you legally. But it is important to ensure that you have adequate coverage and how much you can afford.
Along with the cover, we have predetermined plans that you can choose based on who you are comfortable with.
Security for your car?
Liability will not protect your own car. So if you want to add comprehensive and collision insurance to cover the cost of any damage to your car, then you should consider adding them to your policy.
Comprehensive insurance reimburses you for damage to your car that was not caused by any collision. If you are involved in an accident then collision insurance covers the cost of replacing or repairing your car.
Adding it is how much you will pay, but it is worth it for peace of mind.
How much are you willing to pay on your own?
There is a direct relationship between paying a lower premium and making a policy with more deductions. This creates a direct route to reduce auto insurance costs.
Remember that if you meet in an accident, the money you save from lower premiums will be quickly deducted by higher car insurance because you will need to pay this portion.
Imagine filling all that information over and over again, when you want to get a quote from each insurance company!
With the cover, we will search the market of over 30 insurers, who will find you with coverage at a rate that will not break the bank.
Once you receive your quote, you will receive a text message from one of our advisors. You can review the bid in the app and ask any question on SMS. This coverage is easy to obtain.
Cover will get you Auto bid in five minutes. You just have to answer some small questions.
Get your auto quote here