Insurance Basics: Everything You Need to Know

A Few Things To Ask Your Auto Insurance Agent Before Buying Another Car

If you have decided to buy a second car, or swap out your old one, you are going to need to talk with your insurance agent. You may just figure that insurance is a necessary evil, and there is nothing you can do to get a lower rate. However, there may be a few things you can do that can help determine how much your premium will be. Here are a few things you should discuss with the agent before deciding on auto insurance services.

Which Reports Will Be Pulled

You probably know the insurance company is going to pull your claim history, motor vehicle report, and a credit report. You may not realize they can also check to see if any other licensed drivers live in the house and If those drivers have registered vehicles. Many people feel it is a good idea to lie about other drivers in the house to keep their payments down. However, the company may feel that you are unreliable because of the lie and add to the formula that determines your premium. If you have any intention of lying or have done so in the past, ask the agent if they check this information.

Your Driving Record

You may know how many tickets you have gotten in the past but may not know when each one will come off your record or will no longer be a consideration for insurance purposes. Ask to go over your driving record with the agent. If you find out a ticket will be coming off soon and will lower your premium, you may want to wait for this before buying the new car. Generally, your insurance rate is not going to go down during the policy term regardless of a ticket or two coming off your record. You can also ask if taking a driving course will help remove the ticket points. Many of these courses can be completed online in your own home.


There are a number of discounts available. You may be able to get one for belonging to a civic community group, having good grades in school, or through your employer. Take the time to go over the entire list of discounts and be sure to take advantage of any for which you qualify.

Auto insurance is necessary in every state. It is up to you to do everything you can to get a lower rate without losing any coverage. Of course unless you don't mind paying extra for something.