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Most
vehicle owners transfer their existing insurance policies over to their new car. If you've been with the same
company for a long time, however, it doesn't hurt to see how they measure up to other carriers. The difference
between insurance companies can be staggering!
Don't sign anything until you find out what your insurance
costs will be. Before you buy a new or used vehicle, get a quote on the car you want from an experienced
online insurance broker. Internet Resources
links you to more insurance info.
How Are Insurance Rates Determined?
- In setting premiums, insurance companies rely on some factors
not directly related to the vehicle itself. Rates are affected by your zip code, age, gender, marital status,
driving record (tickets & accidents, both yours and your family's), and finally the make, year, model, and type of
vehicle you're insuring.
Required By DMV
- To get new tags for your purchase, in addition to your
driver's license you must present proof of insurance to your state's Department of Motor Vehicles (DMV). Your
insurance agent will give you a new insurance identification card, listing your carrier, policy number, VIN#
(vehicle identification number), and your name and address. Make sure the VIN# is correct and that the address
on the card matches your driver's license exactly.
Pitfalls To Avoid
- If you're in the majority of drivers whose driving record
isn't perfect, don't lie about it when you're getting online quotes. Insurance companies will check your
driving record. They will even find out about your out-of-state tickets and accidents. You can be
charged with fraud!
If your driving record is questionable, get a copy of your
driving record before shopping for insurance. "Questionable" means accidents you were involved in and traffic
tickets you may have received, any time in the past 5 years. Even if you were found not at fault or not
guilty, or you paid off your tickets like a good citizen, check your record to make sure your compliance has been
noted.
Either go through
reputable insurance broker or buy direct from well known national companies like State Farm,
Travelers, Fireman's Fund, Aetna, Allstate, AIG, AARP, Progressive, Nationwide, CNA, and Liberty Mutual. Avoid
brokers who guarantee coverage for all while advertising their low down payments; they sell policies from
under-funded high-risk insurance carriers. The best way to evaluate an insurance company is to research its
A.M.Best rating, which tells you its ability to pay off. Try to buy
insurance only from companies with "A" ratings. Go no lower than "B."
Types Of
Insurance Coverage are covered on the next page>
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