Do you think “covered” really help you in insurance? If you own a car, you ought to have car insurance. Getting car insurance isn’t a rocket science but choosing the right quote and company is a great deal. Your auto insurance cost depends on various factors including marital status, age, driving habits and where you live in. When it comes to car insurance policy, you need to understand the tidbits about your car and few untold truths that save you money. Many people scan through the insurance document once the properties get damaged or, after an accident, worst happens. The truth is many people are not aware of issues surrounding car insurance, which can have a significant impact on the insurance claims. Here are five misconceptions that every car owners should be aware of before they opt for any insurance policy.
Truth #1: Good Credit = Good Discount
There were times when car insurance ignored credit score while quoting insurance rate. Nowadays, insurance companies pull out credit score to evaluate quote. This process is termed as “insurance risk score.” The insurer uses credit-based scores to assess likelihood of claims offered. The variables include age, claims history, resident place, car type, driving record, average miles, among few others. To improve individual credit score, make sure to check credit report regularly and contact the credit office to clear errors, if any. Insurance companies believe that good credit score show how responsible the person is and will honor his payments in the coming future. Good score also depicts your driving habits, which can add up to higher discount.
Truth #2: Brand loyalty is a waste
Many car owners believe the concept of choosing one insurer, setting the premium and everything will be taken care of. If that is the case then you’re highly mistaken! It is not necessary to be loyal to your brand they won’t pay you for loyalty. Internet is flooded with website useful to compare and calculate premiums of different insurance companies. The comparison quote list has change drastically on the basis of companies, facilities, premium plans, quotes, claim rules and benefits from one insurer to other. Instead of renewing automatically, use compare policy once a year so that you get the best auto insurance rates. Some sell policies directly to clients while some use agents or brokers. Getting direct policy from insurance company can save you money. Stop worrying, lower rates doesn’t mean less coverage or bad service. You’ll get affordable premiums, all-round coverage and customer service.
Truth #3: Stopping payment can curb all issue
If you want to switch to new insurance companies, stopping payment is not the answer. If you stop paying premiums, your policy will cancel but your existing company might report to credit office for non-payment. This can hamper credit score in the long run. Your insurance history will show a cancellation that might decrease the chance of getting good insurance policy. Before you want to cancel, make sure you complete the proper paperwork with the current insurer such as written cancellation application or form with accurate information. It may be the case, where most companies require cancellation process should be done in writing. If you fail to do so, you still find premiums withdrawn from account automatically.
Truth #4: Pay complete auto insurance and save money
Most auto insurance providers charge fee to break down your payments into specific installments as per every months. The more you divide your installments to convenience fees, your car insurance cost you more. Charger will also increase as per the method of payment such as pay-by-phone and auto bill pay. Don’t forget to ask for administrative fees. If it is financial viable, pay your premium full and save penny. You not only avoid expenses but you won’t worry about missing payment or pressure or late payments. Chances of cancellation are averted.
Truth #5: Heaping uninsured and underinsured policies saves you big money
Stacking works when coverage with motorists policies both uninsured and underinsured combined by policyholder owning many vehicles. Stacking limit your payment increased in events like accident with lack or no insurance cover. For example, if you have $50,000 or $100,000 policy cover for one car will directly result to $100,000 or $200,000 hike in coverage. The coverage limit increased provides you considerable expenses related to injuries and damages due to accident. However, stack is not allowed in major states. So ask before you choose any policies.
Keep an eye on your insurance policy. Keep a constant check so that you don’t pay extra or heavy penalty later. Insurance policy is important, legally and avoid being irresponsible. If you’re switching to new policies, maintain proper documents and make sure old policies expires before getting the new one. Hopefully, these little hidden facts about car insurance can save you good money and you find the perfect insurer for your vehicle.