Buying Auto Insurance: Questions Insurers Ask

The price of an auto insurance policy will depend on a number of factors, some of which you can control and some you can't. You should have answers to the following questions on hand when you apply for auto insurance:

Make, Model and Year of Car: You may be asked how many doors your car has, whether it has two- or four-wheel drive and the engine size in cubic inches.
Where You Live: People in large metropolitan areas tend to pay more for car insurance than those who live in rural areas. People with certain ZIP codes or who live in certain areas within a city pay more than others.
Driving Record and Experience: You'll be asked about any history of accidents and traffic violations.
Age, Gender and Marital Status of Drivers: Men often pay more than women. Younger drivers often pay higher premiums. Generally, unmarried men under age 25 pay the highest premiums.
Length of Time Licensed Within a State.
Whether a Driver Training Course Has Been Completed for New Drivers.
What the Car Is Used For: Drivers who use their cars for pleasure pay less than those who use them for commuting to work.
The Number of Miles Driven Each Year: Some insurers ask for daily and annual mileage averages.
Number of Cars to Be Insured: Including two or more cars on the same policy can save you money.
Home Ownership.
Employment History: Insurance companies are particularly interested in how long you have been with the same employer.
Whether the Driver Smokes.
Where the Vehicle Is Kept: Cars kept in garages usually cost less to insure.
Safety Features: Cars with antilock brakes and air bags often cost less to insure than cars without these features.
Credit History: Insurance companies may inquire whether you have been denied credit within the last 12 months.
A Copy of Your Driver's License, Vehicle Registration and Vehicle Identification (VIN) Number.
The Type of Coverage You Want.

To avoid problems later if you do have to file a claim, it's best to be honest when answering these questions.

Written with the help of Courtney Nash, General Research Specialist at Ceridian Corporation.