There are many terms that are specific to auto insurance, and they can be confusing. Sometimes, it can confuse the best of people. In this article, these terms will be explained so you can know what your insurance agent is talking about. Knowing the definitions of those terms can make a big difference in your ability to make decisions regarding auto insurance.
Be sure you to research your potential insurance rate when you are shopping for a car. Your insurance agent can tell you what vehicles have the best premiums. This can be quite helpful to you when it comes to selecting a car, whether new or used. You won’t pay as much on car insurance if you buy a car with a solid safety rating.
To make sure that your car insurance is correctly covering you, sit down with your agent before making purchases of things that personalize your car. You may put out $1,000 for a fancy stereo system for your car, but if the car is stolen, your insurance is only going to reimburse you for the $30 value they add to your car’s actual function.
It is a common belief that insurance premiums drop as soon as a young driver hits the magic age of 25. However, if they are a good driver, a young person’s insurance rates start dropping at the age of 18.
Letting your auto insurance coverage lapse will raise your insurance rates. Gaps in insurance coverage could happen when you switch carriers or even just switch policies. If a company finds these lapses, they will raise your rates.
Think about what type of coverage you need on your auto insurance. There are plenty of options out there, and they may be confusing. If you are prone to accidents, you might want to consider taking advantage of collision coverage.
Beware of car insurance quotes that seem too good to be true. Cheap may mean just that or it could be what you need. Learn about the company’s reputation and read the fine print about the policy to make sure it’s not a headache waiting to happen.
While you are obtaining quotes for auto insurance, bear in mind that the annual premium cost is not the only feature you should be comparing. By reading the fine print you will be able to find out the amount of the deductible you will owe if you have an accident, the total coverage on the policy and the upper limits of any benefits provided.
Ask for a list of discounts that are available through your current insurance policy. You should note every discount that might apply to you. You’ll want to get the best rate possible.
Make sure only current drivers are covered on your insurance. Adding more drivers to a policy will cost you money. Do you really need to cover more than one driver?
In case you ever have to file a claim to your insurance company, know that insurance companies want a lot of detailed documentation. You can use a cell phone to take pictures of the location and damage of a crash. Another option would be to keep a camera with you all the time just in case you should need it in an emergency like this.
By raising your credit score it is possible to obtain cheaper motor vehicle insurance. Were you aware that car insurers check credit scores? Most insurance companies factor in credit scores because studies show that individuals with low credit tend to experience more accidents. To get a lower insurance rate, make sure you have a good credit score.
There are ways to negotiate a lowered rate even if you have a poor driving record. If you have had a ticket or accident, your insurance company may reduce your rates if you take and complete driving classes. You could also see if your insurance company has a similar program to Progressive’s, which allows drivers to have a computer chip installed into their car. This chip monitors your daily driving habits and reports them back to the insurance company. If you practice good driving habits, the insurance company will then lower your rate.
Be sure you are aware of your recent driving record when considering changing your insurance provider. If you recently received a ticket you may want to wait to do this. Insurance companies look at your driving record when they determine how much they are going to charge you, and they will not look kindly on things like not paying fines. This can reduce the amount of your insurance premiums.
To lower your insurance premium, remove any drivers who you don’t need on your policy. By taking off drivers who no longer drive the vehicle, you can save money on lower premiums. If you have a young driver on your account, remove him and watch your premiums drop like a rock.
Find out what your company offers and compare it to what you need. Most insurers will give you a lower rate if you drive 7,500 miles or less each year. Also, you may pay a lower price if you use public transportation. If that’s not an option, see if you can carpool.
Thoroughly check your vehicle’s insurance policy for possible errors. You might be missing out on some valuable discounts. Is there a typo or mistake in your home address? Is your vehicle’s description accurate? Your premium can be affected by estimated yearly mileage, so make sure that this is part of your policy if your commute to work is short.
Hopefully, this article was able to help you through the maze of auto insurance and to give you confidence when making choices. Learning about the various discounts, terms and policy types that abound in auto insurance will help you to be a better proponent for yourself and your policies.