Will Vehicle Identification Number Affect Insurance Rates
Reader’s Question:
Does the Vehicle Identification Number (VIN) on a particular car affect liability coverage rates?
Elizabeth
Birmingham, AL
The Vehicle Identification Number (VIN) of a car is a unique code assigned to the vehicle by its manufacturer primarily for registration and identification purposes. The number can be decoded to show specifics about the car, such as make, model, body style, year and engine size. By knowing this information insurance carriers can tell what options your car came with as well as know the history of the vehicle.
Typically, a Vehicle Identification Number (VIN) is needed by an Alabama insurance carrier to properly transmit your insurance information to the Alabama Department of Public Safety database. If the VIN is used to verify the history of the car and it shows that the vehicle has a salvage title or has been totaled or stolen in the past it could possibly change your insurance rates if this was not told to the insurance provider beforehand.
Since Alabama insurance carriers vary on their rating systems you would have to contact your state’s insurance regulatory body to find out how a particular insurance company determines its rates since this information must be filed with this government agency.
