What are some auto insurance secrets that the insurance companies know about but that the average consumer does not? Continue reading below to find out…
You May Be Paying More to Insure Your Vehicle
Not all cars will get the same coverage, for the same price. Not only is the cost of your car factored into your premium, but the make, model, safety features, and size of your vehicle are also considered. A fast and small roadster is going to cost you a fortune when compared to a sedan with all the safety features. The color of your car however, is not taken into consideration, contrary to common belief.
Your Assets in the Car are Not Protected
If you have your laptop, CDs, or any other item of value in the car with you during the time of an accident, and these items are damaged, chances are they aren’t covered by your auto insurance. There are special coverage types you can opt in to to get these things protected.
You Must Cancel Your Former Policy When Changing Auto Insurance Companies
When you sign up for a new policy, you are responsible for canceling your old policy. You can usually call in advance to have your coverage discontinued on a set date. If you don’t do so, you may end up having to pay 2 premiums at the end of the month.
Good Credit Goes a Long Way
Almost all auto insurance companies will pull your credit report when calculating your premiums. This is because your credit score is an easy way of determining your likelihood of filing a claim. Your credit score also says a lot about your ability to pay, and be a long term customer. This is one of the many factors that are used to calculate your insurance risk score. Your insurance risk score is not available to you.
Paying in Advance Can Save You Money
You can pay for your auto insurance in a variety of ways. You can pay in monthly installments, semi-annually, or annually. The more you pay in advance, the more you can save. Each payment will cost you an administrative fee. If break up your payments into installments, these fees can add up. Try to pay your insurance in one-lump-sum to avoid these administrative costs.
You’re Responsible For Your Friends Too
Just because you weren’t driving at the time doesn’t mean you won’t have to file a claim and pay up. If you lend your car to a friend, and they get in an accident, you will have to file the claim with YOUR insurance company, not theirs. Either make sure your friends are insured through your existing policy, or tell them to get coverage of their own before you even think about giving them keys to your car.
More Auto Insurance Secrets
To learn even more about auto insurance, scroll around our site. We have a plethora of information in our Blog, Learning Center, and Glossary that can keep you occupied for hours and will make you an auto insurance expert in no time!