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When you apply for an insurance quote, you don’t know how much information the insurance company knows about you, and that could dramatically affect the premium you will have to pay for your policy, and could prevent you purchasing auto insurance, if you are not considered to be a good risk.

If you have a really good credit rating, because you always pay your debts in good time, you could achieve a high rating. In comparison with a person who regularly gets behind in their payments of their accounts. Insurance scores mostly move in the same direction as your credit history, but not always. Your credit report doesn’t reflect your auto insurance risk score.

You should make sure that you have high financial ratings, before you apply for an auto insurance policy.

Things that may effect your auto insurance acceptance is your driving record, your previous claims history, and where you live. Most states have a required minimum auto coverage. Many states will require that you have personal injury protection also. You should take into account your state’s requirements as to how much the minimum is currently, as well as any other requirements you will need in order to place your auto insurance.

If you have been in numerous previous car accidents, the insurance company you are applying to for auto insurance will want to know all the facts.

The focus of the insurance company will always be on losses to themselves.

If you wanted to take a look at your own motor vehicle insurance report, you can access a copy from your state’s department, and there are companies you can get your credit history from: i.e.: Truecredit or Experian.

Bodily Injury Liability covers other people’s bodily injuries or death for which you are responsible, this means it does not cover you or anyone else who may be in your car, only the person driving the other vehicle. This will protect you against medical bills, loss of income and pain or suffering. If you should require legal defense, you will be covered for that as well. It is possible that a lawsuit be filed against you by another party, and you will want enough auto insurance to cover your expenses without you losing all your personal assets. All this should be stated in your policy.

Comprehensive insurance is the name of the auto insurance cover for your own vehicle, and that would cover damage to your car after an accident, if it is stolen, damaged by flood, fire or animals and will pay for the repairs to your car, less your excess agreed upon when taking out thepolicy. The excess is the deductible that you arrange to pay out of your pocket before the insurance company will pay their share. One usually selects as high a deductible as possible, in order to keep your premiums as low as possible.

If your car is quite old, you could consider lowering this coverage, because the coverage is usually limited to the value of the car.

Your spouse would usually also be insured if you have named him/her on your policy. You need to confirm this with your insurance company. If you have a boy/girlfriend and s/he uses your car and is involved in an accident, the insurance company may not pay your claim, unless s/he has been added to your auto insurance policy.

Tags: Auto Insurance

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