Quick Insurance Question!?!?!?!?

Question

Ok, I'm 18 and getting a car soon.

What is the insurance based on? (besides age)
Do they ask you how much you paid for the car? and how much mileage was on it when you brought it?

Cuz my mom says the insurance will cost just about the same as you brought the car for??!?

Answer 1

Typically, insurance rates will vary from State to State and can even vary by ZIPCODE! It also will depend on the type of car/truck, coverages, limits of liability, and driving record. Some companies run credit score es and MOST run a motor vehicle report and CLUE (Comprehensive Loss Underwriting Exchange) report to see about undisclosed accident involvement.

The best thing to do is call a LOCAL independent agent. Don't go across town, or to some other city - look for someone CLOSE. Just look in the phone book for the PIA or Big I (Trusted Choice) logos and you will find a professional licensed agent that will be able to help you solve your insurance problems, and give you rate comparisons of several different companies.

An independent insurance agent will normally have a dozen different companies and if he cannot help you, he should be networked with other local agents that can. In my agency, we have several companies that specialize in insuring the youthful operator.

Most of the replies on this site say "go to this on-line carrier or that on-line carrier or that 1-800 number" but I'm sure that when you do, you will find some impersonal computer user with a script to work from and you won't be able to talk with the same person every time you have a problem!

Good luck and I hope this helps

Answer 2

Besides age, insurance is based on your driving record, and the type of car you're driving (sedan, sports car, suv, etc). Obviously if you're getting a sports car, especially at your age, the insurance will be higher, versus that of a sedan. If you keep a clean driving record, then your premium will go down most likely on an annual basis, but that depends if your plan is 6mos, or annual. Good luck.

Answer 3

Na, insurance is primarily based on type of car (sport, suv, etc) age, sex (more for guys!) history (tickets, felonies, etc.) and also if this is the first time you would be getting insurance then it is gonna cost a little more than if you had insurance for a while. It goes down in time... hope this helps.

Answer 4

Well, mother is always right, but this time she missed the mark slightly.

Your best rate will to be added to her policy assuming you still live at home. The insurance may not be willing to do that though unless the car is in mom's name.

If you have it in your name, here is what they base rates on:

The Facts

1. How are auto insurance rates calculated?
The cost of auto insurance is of great concern to motorists. The rising cost of vehicle repairs and the skyrocketing cost of medical care affect the total cost of auto insurance, pushing premium rates up every year.

State law requires that companies submit request for rate changes to our office along with enough statistical and financial information to justify the rates requested. If our rate analysts are satisfied with the facts provided, the law requires our office to approve the request. If we ignored evidence that a rate was too low, we would be violating the law. The Office of the Insurance Commissioner is obligated to make sure there is enough premium collected to pay possible claims.

The greatest increase in recent years has been in liability coverages. These coverages pay for property damage and bodily injury. The impact of legal costs is a part of the overall expense.

Auto insurance rates are based on a variety of factors. The premium you pay consists of a "base rate" plus or minus amounts reflecting your age, gender, marital status, driving pattern, vehicle type, driving record and claims history. There is a different base rate for each type of car and geographical area. While individual companies may differ in the amounts they assess for each factor, the major rating factors are fairly universal.

Your age: Statistics show that, as a group, drivers under age 30 have more accidents per mile driven than the general population. Thus, young drivers are charged higher rates, as are families with young drivers in the household.

Your gender: Young men are involved in more accidents per miles driven than any other population group. The difference is especially pronounced for male drivers under 30. Washington law allows insurance companies to charge on the basis of gender and age where the actual proof of differences in risk exists.

Your car: Generally, the more expensive your vehicle, the more you will pay for comprehensive and collision coverage. Also, because sports cars and high-performance cars tend to get into more accidents, cost more to repair and are more likely to be stolen, they cost more to insure.

Your location: The higher number of accidents in a populous area will raise both your liability and collision premiums, while higher crime rates in urban areas can raise your comprehensive premiums. The law allows companies to base your rate on your address (garaging territory), even though you may drive to a more urban or rural area.

Driving patterns: The more miles you drive, the higher your rates will be. A car used for a total of 7,000 miles a year would normally have lower rates than a car driven 15,000 miles a year. Your work commuting distance will mean additional miles on top of non-commuting , "pleasure", miles.

Your driving record and claims history: Most companies apply a surcharge to drivers who have been involved in an accident or convicted of multiple traffic violations. Also, the more claims you have made, the higher your rates are likely to be.

Credit Scoring: An insurance score uses information from your credit report to determine how stable or financially responsible you are. There is strong statistical evidence, based on years of analysis, that people with high insurance scores - that is, people with superior credit histories - file fewer or smaller claims. The opposite is also true. People with lower insurance scores as a group tend to file more or larger claims.
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Notice the things they don't look at or ask for? The price you paid. They know what it's worth, and don't care what you paid, and the color. Red cars are not more expensive to insure.

Answer 5

It's also based on gender. Usage at your age doesn't affect the rate.