I know the cliché that goes different strokes for different folks. But why insurance companies give a different car insurance rate to different people?

Lizzy

Columbia SC

Whenever you make requests for car insurance quotes, you’ll be asked for a series of questions such as your personal information, driving experience, the details of your car and among other things. These are questions asked not just because they want to have a profile of you in their documents but also with the major reason that these will be the basis to draft your car insurance quotes and your car insurance rate. Here are just a few of the necessary information required from you:

Personal information. This has been thought of having a slight effect on how car insurance companies calculate the necessary car insurance rate for your policy. If you’re a young driver, especially a teenager, you will definitely be initially quoted with a higher insurance rate since car insurance companies will think that you have lack of experience on the road, and thus have higher risk of getting into car accidents.

Driving history. As most people know, new drivers will be charged higher for insurance costs than the experienced ones. Similarly, those with records of road offenses will see insurance rates higher also.

Car details. Of course, car insurance companies should consider what is being insured in order to determine the insurance costs. As for the car insurance policy, your vehicle’s details, especially its model and make, will definitely be one of the major contributors that increase or decrease your car insurance rate. Each car released in the market has been categorized in several brackets depending on how much it will cost to provide insurance to them. Cars in the low bracket are usually compact and mid-sized cars. Getting these types of car will get you a lower car insurance cost. On the other hand, fast cars and sports cars will get you expensive insurance rates.

Car’s purpose. Aside from product specifications, car insurance rates can also vary depending on how the car will be utilized. Arranged from the most expensive to the least expensive, the five major categories of cars depending on purpose are: commercial cars used heavily in business operations; artesian cars used by skilled professionals; business cars used by companies but not as main source of business; commute cars to drive back and forth from home to school/office; and personal or pleasure cars for short distances trips such as home to grocery.

Understanding these concepts behind your insurance rates will help you make necessary adjustment on your car to get cheapest deals.

Hi, I have just bought a car, and I am relatively new to this car insurance thing. How can a newbie like me evaluate which is the better car insurance quotation? Should I base solely on the price?

Jeff

Worcester, MA

Jeff, there is a first time for everything, so don’t worry. It’s like learning a new game; at first, you will suck at it, but over time, you will be trash-talking the noobs. If you’re thinking about buying car insurance and need to evaluate the best deal, there are many paths to the same goal. You can find an insurance agent, search the Internet for car insurance quotation, or use the telephone to talk to local customer representatives or an insurance expert. Once you get the different quotations, the main question is how do you compare it properly? It is important that you write all the information on paper. Oftentimes, the car insurance company will give you a figure that is lower than the competitor’s price, but there may be some details that are left out.

There are many different types of limits such as bodily injury, property damage, uninsured motorist, and all of these add significant value on the bottomline premium. Sometimes, you see premiums that are lower than the premium of competition, but probably because they left something out. So, you want to make sure you have your basic coverage and everything on the same terms before you compare shop. You can raise your limits and this will raise the premium. When you are comparing the quotes, make sure that it is comparable in all different aspects. Make sure your comparing the same thing.

To summarize everything, you don’t compare a dog to a cat; apples to oranges. Once you are sure you are comparing the same insurance coverage, then that is the time you base your decision on which car insurance has the lowest cost.

Tags: auto insurance coverage, auto insurance premium, Car Insurance Company, car insurance cost, car insurance quotes

I will be leaving for Zimbabwe real soon. Will my Alaska driver’s license and car insurance be honored in that country? If not, where can I get a Zimbabwe car insurance quotation?

Rebecca

Anchorage, AK

Your Alaska driver’s license can no longer be considered valid outside the United States. What you need then in order to drive a car in other foreign countries is an International Driving Permit (IDP). An IDP is honored in over 150 countries, and that includes Zimbabwe. But take note that your International Driving Permit does not replace your Alaska driver’s license. An IDP is also not valid in the country of origin. There are only two organizations that have the authority to give out IDPs to US citizens. One is the American Automobile Touring Alliance and the other is the American Automobile Association.

Regarding your Alaska car insurance, this will not cover you when you go abroad. The first thing you probably need to figure out is whether car insurance is a legal requirement for operating a motor vehicle on Zimbabwe’s public roads. If car insurance isn’t compulsory, but driving is going to be a part of your daily routine there, then purchasing car insurance in that country may be a prudent choice to make. Your biggest chance of getting a Zimbabwe car insurance quotation is by inquiring from major US insurance companies whose scope of business extends to that country. You could also try if there are any Zimbabwe car insurance company websites.

You would probably be either renting a car or using someone else’s vehicle. In the case of rental cars, insurance can be bought from the same rental company. If you’re going to be borrowing somebody else’s car, then what you need is a short-term non-owners policy. As an added precaution, try to learn a little about Zimbabwe’s traffic regulations. You can get some helpful guidelines on driving and car insurance coverage overseas from agencies like the US Department of State Overseas Security Advisory Council.

Tags: auto insurance coverage, car insurance, non owners insurance, rental car insurance

Hello! How do I shop around for car insurance? I just learned how to drive and it’s my first time to own a car. Fill me in, thank you.

Kyle

Detroit, Michigan

Hello Kyle! It’s a good thing you asked. Shopping for a car insurance policy is not what it used to be –a long and meticulous procedure which involves tons of paperwork processing. And although it’s easy to shop around for car insurance policies in auto insurance quote comparison websites, you must learn primarily as a first time auto insurance owner that the price of an auto insurance policy does not specifically indicate its quality.

The first and foremost thing you have to do when shopping for auto insurance policy is finding an auto insurance quote comparison website. By giving certain information about yourself, these websites will help you compare car insurance quotes from different car insurance companies. This is important because different car insurance companies calculate car insurance quotes differently. These differences can get up as much as $2000. That’s why shopping for car insurance online is not only free, easier and faster, you can even be certain to get a discount at a higher chance compared to calling up different car insurance companies and asking for quotes over the phone.

When comparing car insurance quotes from comparison websites online, always remember to choose the car insurance policy which offers sufficient coverage regardless of its price. You don’t want to pay for something that’s although cheap, you don’t really need in the first place.

Tags: auto insurance policy, auto insurance premium, Car Insurance Company, car insurance quotes

My California car insurance declared my car totaled after an accident. How much should I expect to receive for the car?

Moira

San Jose, CA

After a car is declared a total loss following an ill-fated accident, the insured has every right to collect for the car’s cash value from his or her insurer. Car insurance companies use various price determinants such as the Kelly Blue Book, websites that offer car pricing, or dealer surveys in assessing the car’s actual cash value (ACV).

You have to remember that prices may vary from state to state because sales tax will be factored in the final amount. The same type of car you bought in California would be taxed differently in, say, Texas. Prices vary from company to company, too, because each has a different set of pricing standards. Most end up declaring the car totaled if the estimated cost to have it repaired exceeds 51% of the car’s actual cash value. So, expect to receive a small assessment.

It is very important then to be very vigilant in the evaluation process. If you feel like your insurer is trying to shortchange you by quoting a very small amount, do everything you can to get the price you think is fair. Get a third party into the negotiations by engaging the services of an independent appraiser. However, you will have to pay his or her professional fee if you do hire one. But in the end, paying for the appraiser’s fee will prove to be worth it if you were able to negotiate for the best amount for your wrecked car.

Tags: auto insurance claims, car insurance, Car Insurance Company, car insurance quotes