Chances are when you consider purchasing a vehicle, the seller or dealer will ask if you have auto insurance, and if this is your first time, it may not be clear what documentation you’ll need to present to the insurer.
Ideally, before submitting any document or making any payment, you should consider two aspects: a) how to choose the right insurance company; b) what kind of insurance you need.
In addition to hearing recommendations from friends and family about companies they’ve had positive experiences with, you can check this page to find the right carrier for your auto insurance and get a list of carriers in your state using a very simple tool from the Insurance Information Institute ( Find an Insurance Company ).
The first thing the insurance broker or agent will want to know is the type of car you are going to insure. Since this is one of the factors that influence the price of a policy and the type of insurance you need.
Basic information about your car
- Year, model and make.
- The vehicle identification number or VIN ( Vehicle Identification Number ).
- Security accessories that the vehicle has: airbags, seat belts, anti-lock brakes, security systems against theft, alarms, etc.
- Approximately how many miles will you drive per year and how many do you spend commuting to work each day?
- Whether it is a new or used car; the miles already traveled; if you are financing it, or the name and contact information of the financing company.
- If the car will spend the night in a garage, a closed public parking lot, or on the street.
Some insurers offer discounts on new cars and the agent may want to examine the vehicle and/or take photos of it to find out its condition.
When you have special cars or particular models, such as race cars or collectors, the insurance will most likely be more expensive than when it is a regular one. And it is even possible that some companies do not insure certain vehicles and you should go to a specialized insurer that does.
Driver data
It is very important that when you obtain insurance for your car, you identify all drivers who live in your household and who may drive it. This is to prevent that in case, for example, children who are of driving age take your car without your permission, they are covered in case of any problem that has to do with the insured car.
The insurer will find out about the driving history of the owner of the vehicle and the policy. It depends a lot on your trajectory and behavior as a driver, whether the insurer treats you with more or less consideration. As in everything, the higher the risk, the more expensive it will be to insure it.
If you have had numerous crashes or speeding tickets, this history is going to cost you more money when buying insurance; but on the other hand, if you have a good driving record, you will enjoy additional discounts and there are even special programs for safe drivers and/or those who take additional defensive driving classes.
Likewise, if the young drivers in your household have taken driving courses, these can mean discounts – as well as peace of mind -; and if they are good students, they may also receive discounts on their annual or semi-annual premium.
If you have other cars, you may just need to add the new car to your existing policy and get some “loyalty” and long-time customer discounts for that. Also, if you have home insurance, you can place your car insurance with the same insurer. In such a case, inform the broker of the company with which you insure your home.
Personal information
They will ask you to show your driver’s license and they will make a note of it. Not only is it important to confirm your address and identity, but it is also used to assess your driving record (the insurer may request to review your driving record with the state department of motor vehicles).
Similarly, the insurer may initiate a detailed evaluation of your credit history, for which the broker will ask for your social security number. It must ensure the proper handling of your private information and indicate your rights concerning the laws of your state.
If you’re having trouble finding a company to insure your car, either because of the type of car or your driving record, don’t despair, there are two options and you can read more about what to do when you can’t find insurance coverage for your car.
Comparing is the basis for saving on car insurance
Once the agent or broker has all the information, they will provide you with a quote of how much the total cost will be for each renewal period (either 6 months or 1 year) and the coverages that are included. So that you can hire the most appropriate insurance according to your case, you will need to compare with other similar companies and along the same lines, that is, if a company offers you a deductible of 500 dollars, ask for a quote from another company with the same deductible.
If you are financing your vehicle, they will ask for the name of the bank/lender, account number, address, etc. This is because when you buy a vehicle with financing, the title to it remains with the lender until you pay it off. If something were to happen to the car and the insurance had to write a replacement check for it, the bank may be entitled to insurance benefits before you, and the check may come out in both of your names.
Ask your agent how it works in your specific case and explain what procedure to follow—and where to call—if you have a claim, accident, or car problem and need to contact the insurance.
