So you’ve finally bought that sweet sports car you’ve been saving up for, and now you need to buy auto insurance so you can actually drive it. However, there are a few things you should know before you buy auto insurance for your new vehicle so you’re not taken by surprise when you’re faced with high insurance rates. In most cases, insurance rates for sports cars are much higher than those for other types of vehicles for the following three reasons:
- Sports cars are generally more expensive than other cars, which means that they need to be insured for a higher replacement value than regular vehicles.
- In addition to high replacement costs, sports cars can be costly to repair, due to the difficulty of finding replacement parts and skilled technicians.
- Insurance companies consider the typical sports car driver to be less responsible on the road than drivers of conventional cars.
Besides the higher costs of the sports car itself, insurance companies will look at your personal information. In nearly every state, insurance carriers look at your credit score to determine how dependable you are financially. The higher your credit score, the lower your insurance rates. Additionally, your age and marital status are important factors in deciding how responsible you are, and of course, your driving record plays a very important role. And though you can’t really do much to change your age and marital status, you can go to traffic school to get a certificate that proves you’re a responsible driver. Think about it: a couple of hours taking a driving course can save you hundreds of dollars!
If the idea of meeting or talking with an insurance agent, whether it is to talk about home or auto insurance, ranks right up there on your list with a root canal or other “fun” activity, there are some ways you can make it a little easier. A little advance research and preparation can go a long way towards making the meeting go a lot smoother.
The most important thing is to have all documentation with you, whether you’re meeting in person, via the phone, or on the Internet. This will keep you from having to scramble, hunting the information or trying to rack your brain in an effort to retain pertinent information.
For home insurance, this documentation can include:
- The deed to your home or mortgage information if you are still paying for your home.
- The construction materials used when the home was built or remodeled.
- How old your home is.
- A list of the types of protection service that are available where you live. This can include such things as which department provides your law enforcement protection (municipal, county, state, etc.) and whether your fire protection is provided by a paid or volunteer fire department.
For auto insurance, the documentation can include the following:
- Make and model of all vehicles requiring insurance coverage.
- Vehicle identification numbers (VINs) of all vehicles requiring insurance coverage.
- Names, dates of birth, social security numbers, marital status, and employment status of all drivers who will need to be insured.
- List of any accidents, traffic violations, or other incidents for all drivers who will need to be insured.
- Information on any driving schools or courses that any drivers took.
- Driver’s license information, including numbers, the State of issuance, and ages of the drivers to be insured when they received their driver’s licenses.