Auto Insurance FAQ

Applying for auto insurance can sometimes be difficult and there will always be questions that you need answered in order to make an informative decision.

When applying for auto insurance you should know that facts about what you are about to enter, this is especially true for a person that has never had insurance before. Before you start looking for the next big insurance deal you should have some personal information prepared before you contact an agent.

The insurance company is going to ask you some basic questions; here is a list of what you should have. The first information they will want to know is the year, make and model of your vehicle. Next your will need your VIN number or your model number for the vehicle. This can be found on the dealership papers that you signed or you can get the VIN number near the bottom of your windshield to the far left side.

The insurance agent should then ask you for what you will be using the car. Sometimes it can be tempted to tell the agent that it will only be used on the weekends or that you will not be driving to work, but should you get into an accident during a weekday in the morning the insurance company might suspect that you were using it for work and will not accept your claim. Part of this question will also be the distance that you will be driving to work. The reason they ask this question is because the longer the distance you drive the more susceptible you are to get into an accident which means larger premiums.

The last question the insurance company will ask is the name of the lien holder for the vehicle. If you are leasing the vehicle they will want to know the company who holds the lease. Once you pay the vehicle in full you will no longer be asked this question.

This is just the start of the insurance process. Once you start deciding on what coverage you will need will you then see how the premiums can affect your overall payment. Look for our next article which will discuss auto insurance coverage and deductibles.