Auto and Car Insurance

Use of vehicle for insurance premiums?

Auto insurance companies always ask what is the primary use of the vehicle-commute,work,school,pleasure, etc. What is the best answer to get lowest premium? the "pl" is pleasure, yahoo shortened it for some reason

Public Comments

1. Depends on your state. Pleasure is lower in some states, but work is higher in other states. Shop around before buying. If you live closer to work you get a cheaper rate.
2. Honesty is the best policy. If it is discovered that your vehicle was being used for work at the time of an accident and you had it classified as pleasure only, you risk losing coverage for the accident as well as losing your entire policy. If you are leasing or have a loan on the car, that action could result in loss of your car (most loans and leases state you must have x amount of insurance coverage). If you have multiple lines of coverage with one insurer (house & auto for example), you could face losing all coverage as you sign a document stating the information given is true. Insurance premiums are based on risk (if you drive 100,000 miles a year for work you will pay more than someone who drives barely 3,000 miles on the weekends) and they are also regulated by your state (in case you are feeling ripped off). If you feel a price is too high, you can investigate lowering the coverage options. Any insurance broker is willing to work with you on this versus you going to a competitor. But be aware that lower coverage options mean you could pay more in the event of an accident.