Questions You Are Likely to Be Asked When Getting Car Insurance

Are you looking for car insurance? Chances are that you'll have to answer some questions about your driving habits and your car before you are approved for a policy. There is a lot that goes into your car insurance rates, and you need to be ready for the questions you'll be asked.

Here's what to expect:

1. Where do you live?

The first question you'll be asked has to do with where you live. Coverage requirements differ from province to province. I live in Alberta, and when you apply for Alberta car insurance, a premium grid is used. Different provinces come with different levels of mandatory coverage, and because the amount of coverage you have affects your auto rates, it's one of the reasons where you live matters.

Another reason that insurers want to know where you live is due to the fact that your locale can impact your insurance rates. If you live in an area where you are at a higher risk to be in an accident, your premiums might be higher.

2. What are your driving habits?

One of the most important questions you'll be asked has to do with your driving habits. You are likely to be asked about your at-fault accidents and your other driving convictions. Whether or not you have speeding tickets, get in a lot of accidents, or have other issues with driving can lead to higher insurance rates.

Additionally, it might matter how often you drive. An odometer reading might be required when getting car insurance to give your insurer an idea of how much driving you do. The more you drive, the greater the chance that you will get in an accident.

3. What kind of coverage do you want?

The amount of coverage that you ask for can be a big part of your auto insurance rate. The greater the coverage you want, the more expensive your policy. When getting car insurance, you also need to be aware of the type of coverage you want. You will have to get liability coverage, but you may not need comprehensive coverage, depending on the age of your car. It might be time to change your car insurance coverage if your car is paid off and isn't worth as much.

You can also save money on your auto insurance policy by changing your deductible. This is the amount you pay out of pocket before the insurance company steps in. A higher deductible can mean lower insurance costs. If you have money saved up in an emergency fund, you might be able to boost your deductible and lower your rate.

4. What are your demographics?

Finally, your insurer will want to know your characteristics when you are getting car insurance. Your age plays into the amount of experience you have as a driver, and can impact your auto insurance.

Other factors can be a part of the situation as well. On average, being a woman means lower insurance costs -- including for auto coverage. Who you are matters when it comes to car insurance, and that's a question that insurers pay attention to.

There are a lot of factors that go into getting car insurance, and figuring your premium. If you answer the questions honestly, you are more likely to get an accurate auto insurance quote. Pay attention to changing what you can so that you get the lowest-cost insurance possible.