Protect yourself when buying auto insurance online


Using the internet to get great deals

In their quest for cheap auto insurance most people tend to turn to the internet to provide them with cheap auto insurance deals. The internet can allow you to receive five to ten auto insurance quotes in about ten minutes, which simplifies the whole process of shopping for auto insurance and also saves the person a great deal of time and money.

The need for privacy

While shopping online users used to be required to provide the system with their name, age, sex, location, information on the car you drive, driving record, driver’s license number and social security number in order to generate the auto insurance quotes. Most users aren’t comfortable with sharing private information like their driver’s license number and Social Security Number and were thus uncomfortable with online quotes.

The solution

Auto insurance companies understood this need and rushed to the aid of their customers. They understood that customers would prefer to get quotes without having to disclose their entire record to the insurance company and its agents via their Social Security Number.

The newer systems supported by most auto insurance companies only request generic information and avoid any personal information which people by and large don’t like giving out unless unavoidable. Generally you would need to provide information such as your name, age, sex, location, information on the car you drive and driving record. Some sites ask you for your phone number so you can be contacted again and this can be provided using your discretion; if the company has a strict non-disclosure agreement you can rest assured your data is protected.

As a rule of thumb apply for quotes only at websites where you are not required to provide any information you are uncomfortable in providing. There are loads of companies out there who have understood and respect the need for your privacy and will give you accurate calculations based on non sensitive information.

The calculation

Your premium is calculated based on your age, sex, location, information on the car you drive and driving record. Women generally attract a lower premium as compared to men, and a married man in his thirty’s is likely to attract a lower premium as a 20 year single man. The location also plays a very important role; if you live in a neighborhood with a high crime rate you are considered high risk and will definitely attract a higher premium. A sports car with the latest gizmos will cost considerably more to insure as compared to, say a five year old station wagon. Lastly your driving record should be free of any tickets; a speeding ticket can affect your premiums quite adversely.

Credit Rating

Some sites do request your credit score to ensure you qualify to be insured by them. In many states insurance companies turn down people with bad credit ratings as they consider them as a higher potential risk to the company. There is barely any harm in giving out your credit score to your insurer, as a company can’t really misuse it. However a noteworthy point is to keep your credit score as high as possible with a clean credit rating. Many companies insure customers with bad credit, but charge them a considerably higher premium to cover the chances of a possible loss on accord of insuring a high risk case.