Beyond the sale price, insurance is one of the most important financial questions to consider before buying a new car.
Most states require individuals to purchase insurance coverage to drive legally.Auto insurance can be divided into two basic coverage areas: liability and property damage.
When shopping for auto insurance, premium quotations are a useful tool for comparison of different companies’ products. Two factors determine what you pay for auto insurance. The first fact or is underwriting where insurance companies assess the risk associated with an applicant. The second factor is rating; the rating assigns a price based on what the insurer believes it will cost to assume the financial responsibility for the applicant’s potential claim.
With the joys of a new ride comes much responsibility – especially when the unexpected occurs.
According to a recent NAIC survey:
- Thirty-eight percent of consumers believed they should share their driver’s license number with the other driver — one in six would even allow the other driver to photograph the license as a convenient way to exchange information.
- So what’s the risk? In the hands of criminals, your driver’s license number can be as valuable as cash. Many retailers accept driver’s license information to verify identity over the phone. In fact, your license number is the most common way to confirm your identity after Social Security number and date of birth.
- Twenty-five percent of consumers surveyed said they would share their home address.
- Actually, your home address gives identity thieves the physical location of your mail or garbage, the first place criminals often look for personal financial information. And, now a stranger knows where you live, possibly putting your personal safety at risk.
- Twenty-nine percent of survey respondents believed they are required to share personal phone numbers. In fact, sharing your phone number is rarely necessary.
The survey also found consumers were unsure about other auto accident best practices. For example, nearly 20 percent of respondents believe the only reason to call police after an accident is if someone is injured. However, filing a police report can help facilitate the insurance claims process.
WreckCheck App for Smartphones
To take some of the guesswork out of a tense situation, NAIC developed WreckCheckTM. This free mobile app for iPhone® and Android® smartphones outlines what to do immediately following an accident and walks users through a step-by-step process to create their own accident report. The app directs them to capture photos and helps document and share only what is necessary to file an insurance claim. Users can even email their completed reports to themselves and their insurance agents.
No smartphone? Download a printable accident checklist and other tips for staying calm, safe and smart on the road.