I am trying to get an auto insurance. But when i went to an agent to get a quote, he told me that since i wasn’t on somebody’s policy for 3 years, my premium is going to be much more higher.
But I have had an license for more than 3 years but just was not on my parents policy because of high insurance premium.
So my question is what is considered
1. i need license for 3 years
2. i need to be on someone else’s policy for 3 years.
4 Comments Already
April 8th, 2010 @5:09 pm
You can compare how the insurance quotes would change, for example here – car-insurance.22web.net
April 8th, 2010 @5:16 pm
Factors include, as you realize, having prior insurance IN YOUR NAME. Regardless of whether you were listed on another policy, this is the first one in your name, so the rate would be higher. Also, garaging address, where you live; how old you are; how long you’ve been licensed; your driving history; your claims history; your credit score; what kind of car you’re driving; which coverages you have on that car. Hmm. I think I got them all.
April 8th, 2010 @6:16 pm
Will be be going on your parents policy now? Do you still live at home?
I believe the agent said the premiums would be higher than your parents is because they have been with that company a while and get a 3 yr loyalty discount and if you come in on your own you will not get that discount. If you are added to your parents household then you would get that discount too. But if you add your car at a different address then you would not get their loyalty discount.
If possible go on your parents policy now. And, rates and discounts vary by company and state. Call your agent back and ask him about the loyalty discount.
Insurance companies use statistics to set rates. It is a statistical fact that people that have not had insurance will have a higher chance of getting into an accident so therefore they’ll charge you more. They also look at how long you’ve been driving but the no insurance weighs more on the premium than experience. People that have been driving for 40 years also pay more if they have not had insurance.
Since you have not been on a policy you have been driving illegally for the last three years. You are lucky that you have not had an accident or been stopped by the police. People ask questions here often about what they should do because they just had an accident with no insurance.