I am buying a car, though I probably won’t use it to commute everyday, only for long trips out of the city. I noticed that insurance companies on their quotes ask what the car will be used for. I’m not even sure myself how the car will be used on average, what answer gets the lowest rate? Some examples are "Commuting to Job" "Commuting to School" "Pleasure/recreation" "Business"
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{ 7 comments… read them below or add one }
The lowest rate does you no good, if the claim is denied because you lied on the application.
And, they’re going to check milage.
No commuting gets the lowest rate – pleasure use only. But only if you put less than 5K miles on the car every year.
going back and forth to work is the best thing to tell them,if you tell them its for pleasure then they will think you,ll be driving it more,if your at work then they think its setting for a while,there is no real way out of this,but if you tell them its going to be used for business,the rate will be really high,for work and leisure is the best thing to put down,good luck
if the vehicle is mostly going to be at home and not driven very much at all, it may qualify for the recreational category which is the cheapest.
No matter how you anser, it must be the truth. If you mis represent on the insurance application, they have the right to reduce any claim you may have, or deny it all together.
If you will use it to commute to work, normally that will raise your rates. The number of miles driven per year also determines rates. The answer that will give you the lowest rate would be less than 12,000 miles per year for pleasure only. BUT…..If this is not true, you could face trouble later.
How about telling them the truth. If you misrepresent the facts on your initial application, any claim you present could be denied.
I don’t mean to be “in your face” with this, but let’s just say I definitely have a different view on this. Great post though…
This is a simple tip for younger drivers, especially under 25′s. Find an older person and put them as a second driver on your insurance. This works best if you can find a female in her 40′s or 50′s. Why is it cheaper?