What information does the insurer need to issue auto insurance?
What information does the insurer need to issue auto insurance?
Chances are that when you consider buying a vehicle, the seller or dealer will ask you if you have car insurance and if this is your first time, it may not be very clear what documentation you will need to present to the insurer.
Ideally, before delivering any document or making any payment, you should consider two aspects: a) how to choose the right insurer; b) what kind of insurance you need.
In addition to hearing recommendations from friends and family about companies they have had positive experiences with, you can check this page to find the right insurer for your auto insurance, as well as get a list of companies 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. What Is Auto Insurance? How Can You Get It?
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?
- If it is a new or used car; the miles already traveled; if you are financing it, the name and contact details 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 for new cars, and the agent may want to examine the vehicle and/or take photos of it to determine its condition.
When you have special cars or particular models, such as racing cars or collector’s cars, 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 must go to a specialized insurer that does.
Driver data
It is very important when you get auto insurance that you identify all the drivers who live in your home and who can drive you. This is to prevent that in case, for example, children who are of driving age take your car without your permission, they will be covered in case of any problem that has to do with the insured car.
The insurer will inquire about the driving history of the owner of the vehicle and the policy. It depends a lot on your career and behavior as a driver, whether the insurer treats you with more or less consideration. As with everything, the higher the risk, the more expensive it will be to insure.
If you’ve had numerous crashes or speeding tickets, this story is going to cost you more money when buying insurance; but instead, 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 house have taken driving courses, these can mean discounts – in addition to peace of mind -; and if they are good students, they may also receive discounts on their annual or semester premium.
If you have other cars, you may just need to add the new car to the existing policy and still get some “loyalty” and customer service discounts. Also, if you have home insurance, you can place your auto insurance with the same insurer. In such a case, inform the broker of the company with which you insure your house.
Personal information
Obviously, they will ask you to show your driver’s license and they will take note of it. It is not only important to confirm your address and identity, but is also used to evaluate your driving record (the insurer may request to check 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 with respect to the laws of his state.
If you are having trouble finding a company to insure your car, either because of the type of car or your driving history, don’t despair, there are two options and you can read more about what to do when you can’t find auto insurance coverage.
Comparing is the basis of saving on auto 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. In order for you to hire the most appropriate insurance according to your case, you will need to compare with other similar companies and with the same lines, that is, if a company offers you a deductible of $500, 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 the vehicle 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 the insurance benefits before you are, and the check may come in both of your names.
Ask your agent how it works in your specific case and explain what procedure you should follow—and where to call—in case you have a claim, accident, or car problem and need to contact insurance. Instagram media kit
