Talking With Insurance Companies

When shopping for an auto insurance policy, you definitely want to get the lowest possible quote. However, the cost of your premiums will depend on how you respond to the questions of prospective insurance companies. Here are the most common questions to expect when asking for an auto insurance quote.

How Many Miles Do You Drive?

Make sure you have a rough estimate of the number of miles you drive annually. If you are not sure, calculate your weekly mileage and multiply the result by 52. Mileage helps the insurance company estimate your susceptibility to accidents or other road incidents.

The more time you are on the road, the more risk you pose to an insurance company. The average mileage for most insurers is 10,000 miles annually. Many insurance companies offer discounts to drivers who spend less than 7,000 miles on the road. Your rates are higher if you drive more miles than an average driver.

What Is Your Driving Track Record?

The other thing your insurance provider will be concerned about is your driving track record. Insurance companies regard speeding tickets with a high probability of future accidents. The more speeding tickets you have, the higher your insurance rates.

Additionally, your insurance provider will look at your driving record. If you have been involved in multiple at-fault accidents, you should expect the cost of your auto insurance policy to be high. This is because it shows you are not a skilled or attentive driver. Insurance companies associate a high rate of at-fault accidents with a high risk for future insurance claims.

What Is Your Zip Code?

Many people wonder why auto insurance companies are concerned about where they live. However, your area of residence and where you park your car affect your insurance rates. This is because you could be living in a high crime rate region.

Additionally, a neighborhood with lots of people means there is a high likelihood of accidents. Maybe the area where you live has had a high number of insurance claims recently. Therefore, if you live in a crime-prone area or a neighborhood with a high potential for accidents, your insurance premiums will be high.

In Conclusion

When getting an insurance quote, it is advisable to be prepared to respond to the questions your prospective insurance company will ask. While you cannot change some facts, you can make some adjustments to get a better quote. For example, you can reduce your mileage or improve your driving record. Generally, the more likely you are to file a claim, the lower your insurance premium rates.