There are five variables you should keep in mind when quoting vehicle insurance or when you want to renew it and see the possibilities of negotiating the price with your current insurer or with a new one that interests you.
According to cheapautoinsurance.com if you have insurance, you can begin to quote its renewal or change 30 days before its expiration. The price between insurers varies, and you can find discounts or promotions if you renew your current rate or if you invest some time to inform and compare to negotiate.
Below you will find out what kind of information is important or influences the calculation of the price of your policy.
The commercial value of your vehicle
The value for which your vehicle is going to be insured will correspond to the commercial value of the vehicle; in other words, what you would obtain as the owner, in the event of an accident or loss, must be the equivalent to the value you would obtain from the sale of the vehicle at the date of acquisition of the policy.
The physical references of the order will be requested, as for example the year, the model, the line, the mark. It is necessary to inform the insurer about the accessories that the car comes with and, above all, those that you have installed, such as the alarm system, upholstery, sound, mirrors, rims, paint, among others.
The price of your insurance will also be determined by the investment you have made in your vehicle, that is if you have purchased spare parts or accessories that you want to be covered in case of an incident or theft.
The insured’s information
Personal information becomes one of the most important variables in calculating the value of insurance for private vehicles; it is for this reason that your policy may cost less or more than that of someone else who owns a vehicle with similar characteristics.
It is taken into account: the economic activity you perform, age, sex, marital status, number and age of children, place of residence, place of work. Even the history of your license will be important: the type and number of traffic violations, dates of your accidents during the last three years, the number of previous accidents, the date of issuance of the license and even the indicators of theft of your car.
Remember that insurance companies will look for ways to corroborate that the information you provide is correct, which will also influence the value of the policy to vary or the company to refrain from approving a contract with you.
Characteristics of your old vehicle insurance
On many occasions, when you want to renew your policy, companies may offer you additional discounts or coverages. You will be able to negotiate the price of vehicle insurance with a new insurer or with the current one, taking as a reference the information about the policy you enjoy.
Defining the deductible
Remember that the deductible is the percentage of the total insured for which you will be responsible in the event of a claim.
When taking out the price of your insurance, you should also think about whether you want to save on the payment of your policy installments or the payment you will make in the event of an accident, because both variables are inversely proportional: the higher the deductible, the lower the price to be paid for your insurance; the lower the deductible, the higher the price of your insurance.
If you’re confused, there’s a way to summarize it: the value of your insurance will depend primarily on the current market value of your car; if you want insurance to cover you for partial loss, damage, or total loss, the value of that policy will also depend primarily on the availability and cost of spare parts; if you’re thinking of a policy with third-party liability coverage, it will also be calculated based on the service your vehicle provides (whether it’s private or public service).