Five Facts About Your Auto Insurance Policy That May Perhaps Surprise You
Buying car insurance seems deceptively simple. As long as you know the type of coverages you need, and the amount you should purchase for each type, the rest seems easy. Be careful. Your policy may include dozens of important details that may surprise you. Some provide opportunities to save money. Others will result in higher premiums. Take the time to carefully review your auto insurance policy. The following five items may be lurking in the fine print.
#1 - Filing An incident Will Boost Your Premiums
All auto insurance companies have their own recipe to estimate car insurance rates, and history plays a significant part. Each insurer weights your driving record, previous claims, age, and gender differently.
It's no surprise that filing an insurance claim can significantly effect your car insurance premiums. In some instances, an insurer will ignore your first claim. You'll see that insurance rates vary significantly, so the best route to take is to acquire a significant sample of car insurance quotes.
#2 - Personal Possessions Won't be Protected
Suppose you are involved in a car accident, and your new, high-end digital camera is demolished. Is your camera covered under your auto insurance policy? Sadly, no. The same is true if you leave your wallet or purse in your vehicle, and it is stolen.
If you intend to leave your valuables, gadgets, or other belongings in your car, consider buying property insurance. That's the only way to protect yourself from damage or loss.
#3 - Discounts - A Drivers Dream
There's a good chance your policy is loaded with potential discounts that can reduce your rates. For example, many insurers will extend a discount to students who keep their grade point average above a certain level. Discounts are also available for those who maintain a clean driving record, package multiple lines (e.g. home insurance, life insurance, etc.), or put multiple cars on the same policy..
#4 - Without Proper Termination, You will be Still On The Hook
One of the most common mistakes people make when switching to a new car insurance company is to assume their old contract expires with nonpayment. That is, if they refuse to pay their premiums, their previous insurer will cancel their policy. Unfortunately, it's not that simple.
Your previous insurer will indeed cancel your contract if you neglect to pay your premiums. But they consider the contract to represent an outstanding balance, similar to a balance you might carry on your credit card. If you refuse to pay, your insurer will likely report the nonpayment to the credit agencies..
When you switch auto insurers, call your old company and notify them of your cancellation. Tell the representative the date you would like it to take effect. If they request the notification in writing, ask them to send you a formal cancellation form you can sign and return.
#5 - Your personal Insurance Premiums Might Escalate Thanks To A Buddy's Accident
A lot of people allow their friends and family to use their vehicle. Many fail to realize, however, they are responsible for that person's actions while driving their car. For example, suppose you let a friend borrow your car for a quick trip to the grocery store. On the way to the store, he crashes into another driver. When the other driver files a claim, you can expect your rates to rise.
When you switch auto insurers, contact your old insurance agent and advise them of your plans. Convey to the insuranec broker the time you need it to take effect. Once they require the written notification, ask them to provide you with a formalised cancellation form for signing.
In conclusion, you should make sure your new auto insurance coverage goes into effect prior to the old policy lapsing. If not, you may risk a coverage gap.|Make certain that your new auto insurance coverage assumes effect before the old policy has been canceled. If not, you could find yourself uninsured. Meticulously read your insurance coverage, and do not forget to ask questions. Your car insurance policy is a written agreement, however it is not drafted in stone. It is possible to make variations through talking about particulars of the policy and your circumstances with your insurance agent.
Five Facts About Your Auto Insurance Policy That May Perhaps Surprise You
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