When you are getting motor vehicle insurance, the insurance company would ask you many questions. These questions are not just the basis for refusing insurance cover, but they also determine the premium you have to pay on your insurance policy. Here are some of the common questions asked by motor vehicle insurers and their potential impact on insurance costs.
When you contact the insurance company, the first thing they’ll ask you for will be your social security number and the vehicle registration number. With these numbers, the company can check the claims you have made in past. Understandably, insurers do not like people who make too many claims for minor incidents, and more than three claims would make the insurer wary of you.
You would also be asked about your marital status. If you are below 25, then your being single would cost you more, especially if you have been recently divorced. Your occupation matters a lot too. Musicians, artists, social workers and many other occupations are considered high risk by insurance companies.
The insurance company would obviously ask many questions about your vehicle and driving habits. Statistics show that people who drive more than 30 miles back and forth from their office, or more than 7,500 miles in a year, have a greater chance of being in an accident. So how much should drive your vehicle in a year will also have some impact on the premium that you would have to pay.
Not having any traffic violations or at-fault accidents will be a big bonus. If you were involved in such an incident several years ago, then the insurer might overlook it. The first accident will cost you around one-tenth more, the second around one-fifth more and third could end up costing up to 50% more if these incidents are within three years of each other.
Speeding tickets make the insurance companies see red, but they are generous towards first-timers if the speed was not too much above the limit. Insurers usually only look at your five-year driving history, so don’t be proactive in informing them about any violations before that.
Although all these factors will largely determine the premium that you would have to pay on your insurance policy, you should remember that insurance rates can vary significantly from one company to another. It never hurts to do some research before you choose an insurance policy.