If you live in the USA, but not in New York, Chicago, or Los Angeles, then it is most likely that you drive a car. This means that you also pay for car insurance, as residents of all states except New Hampshire are required to have one. But do you know where these numbers come from? First, it all depends on the insurance company itself. For example, www.americaninsurance.com is considered to be one of the most affordable.
It is worth noting that insurance companies try to protect themselves against the risk of paying money. That is why any people can go and buy insurance with the same coverage, but two people can pay different amounts for it. Several factors affect how much you will pay for insurance. Different insurance companies in America use different formulas. But usually, they take into account the factors that we will discuss in the article. Also, we will discuss what is needed to ensure a car for the first time.
What documents are Needed For Car Insurance
If you are applying for a policy for the first time, then you need the following:
- The passport;
- Driving license of people who will drive the insured car;
- Car Diagnostic Card.
If the insurance contract is concluded by the representative of the policyholder, a power of attorney will also be required. You can also provide a contract of sale or another official document that confirms the cost of the car. This can affect the price of insurance for a car or the size of further insurance payments in a favorable direction.
The History of Driving
If you are likely to get into an accident, then get ready to pay more than a good driver. Some companies offer an additional service called “accident forgiveness,” the essence of which is that while you are with this company, your accidents and payments for them will not affect your monthly payment. If you are offered this, take it without hesitation. Usually, the addition of this service will not affect your payment.
Insurance companies rely on statistics and based on it, people under 25 and over 65 have a much higher risk of an accident. Also, according to statistics, men are more likely to get into accidents than women. Talking about married people, they are less at risk of an accident.
In theory, you do not have to tell them where you work. But your work can negatively affect the size of your insurance premiums. For some reason, they consider doctors and lawyers at a higher risk of an accident than, for example, teachers. Maybe, it happens because of stress,
According to statistics, people with higher education are less likely to have an accident. Therefore, they have to pay less.
The car you drive can also affect your insurance fees. Apparently, they will depend on how safe your car is and how attractive it is to thieves.
How often and how far you usually travel by car can also affect your insurance. The more often and further you move, the higher the chance that you will get into an accident. No insurance company will know exactly how many miles you travel per year. Therefore, you have an approximate number.