When you sign-up for car insurance, you may have noticed that they ask you a lot of detailed questions about your vehicle. All the information you provide your insurance company with, as well as the information they get directly from your VIN, will impact your premium.
#1 The Year Your Car Was Made
The year your car was made can impact your premium in a variety of ways. If you just purchased a brand-new car, you may be able to get a new car discount. New car discounts are designed to reward people for driving new cars with newer safety features.
Often, however, your insurance rate will decrease with the age of your vehicle to a certain point, because the cost of replacing your vehicle has gone down. At a certain point, your cost of insuring your vehicle may go up again as your car becomes a classic or lacks important safety features.
#2 The Car Manufacture
Who manufactures your vehicle matters. As a rule of thumb, American made vehicles are often less costly to insure because they are easier to find parts for when they get damaged. On the flip side, foreign vehicles often carry high insurance rates because it can be more expensive to source replacement parts in the event of an accident. This is not always the case, but it is a factor.
#3 The Model of Your Vehicle
Yes, it does matter if you go with a more basic model or with a luxury or sports model. The more basic the model, the lower the insurance cost. Going for a luxury or sports model will not only cost you when you purchase your vehicle, but insuring luxury, and sports models will also cost you more than basic models.
#4 Safety Features on the Vehicle Matter
The safety features on your vehicle matter. The more safety features you have, the more discounts you will enjoy on your insurance coverage. Insurance companies look for safety features such as dual airbags and back-up sensors. Additional modern features, such as smart cruise control and lane drifting sensors, can score you additional discounts.
#5 Car Alarm on Your Vehicle
Car alarms may feel a little repetitive from a consumer perspective. Alarms go off so often that most people ignore them. However, insurance companies still really care about cars having alarms on them. Having an alarm on your car can help you reduce your cost of insurance.
All those questions your insurance agent asks you about your vehicle matter, so be sure to answer them correctly. Keep in mind that the fancier the car, the more the coverage will cost.
For more information, contact a local auto insurance provider like Phillip R Davis Insurance.
In a few months, my husband and I plan to begin a major renovation on our home. During this extensive project, we will be ripping out old flooring, redoing our front porch, and building a 600-700 square foot addition. After all of our hard work is complete, we should have significantly more equity in our house than we do now. As a result, my spouse and I will need to re-evaluate our home insurance policy. We will likely need to increase our policy’s coverage. On this blog, I hope you will discover some of the most common reasons for increasing the value of a home insurance policy. Enjoy!