Category >> Auto >> Auto Insurance Facts part two
Auto Insurance Facts part two

When determining your premium, auto insurance companies will first group you with a set of individuals that have the same risk characteristics as yours. They have a base rate for this; then using your personal records they will assess your individual risk factors and tweak the premium amount. Factors such as the number of at-fault accidents that you have been involved in, your driving experience, area of residence, traffic violations, etc are taken into consideration. Factors that do not influence your premium amount include your sex, marital status, race, creed, national origin, religion, and age. You are very much within your rights to file a complaint with the Division of Insurance if you find an auto insurance company discriminating against you using any of the above.   

Know that you are in line for a number of discounts on your auto insurance premium. A lot many of these discounts are mandatory by law. These include discounts on safety features and passive restraint systems, low annual mileage, anti-theft devices, etc. Optional discounts include discounts for students, hybrid cars, multiple policies, customer loyalty discount, etc. Check with different agents for the discounts offered and how they affect your premium. Shopping for auto insurance requires that you compare like items; basically the same premium rates and compare the coverage and discounts offered. Take the help of an insurance professional in understanding the kind of insurance cover that will benefit you the most. Price is by far the most important consideration since you will be paying premiums for a long time but you should also pay attention to other factors such as discounts, the level of service, speed of claims handling, etc. Selecting your auto insurance agent should be a combination of all these factors.

You may have to pay a surcharge depending upon the nature of your accident. The surcharges are decided by the individual insurance companies and they will levy a surcharge depending upon the severity of your at-fault accident or traffic violation. 

You can hunt for auto insurance online or through insurance agents. There are two types of insurance agents – captive insurance agents that represent one company only and independent insurance agents that work for multiple insurance companies and do not have a vested interest in selling you the insurance policies of a given insurance company. Experience shows that policy holders with independent insurance agents find it easier to get their claims passed.

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