Psst, did you know there are some secrets that auto insurance companies don’t want their policyholders to know? Read on to find out more.
You may be paying more
Different cars get different coverage for the same price. Each insurance company has its unique way of calculating the premium by factoring in the cost of the car, make, model, safety features, and the size of the vehicle, among other factors.
This means that it’s always a good idea to compare the different deals you may be able to get to avoid paying more unnecessarily.
Your assets aren’t protected
Any valuable items inside the car at the time of the accident that get damaged aren’t typically included in your policy and require additional special coverage.
Good credit report matters
Most insurance companies pull up your credit report before calculating your premium as it’s an easy way to determine the likelihood of filling a claim. The score also throws light on your ability to pay the premium and be a long-term customer.
Advance payments can save money
You can pay your auto insurance premium either on a monthly, semi-annual, or annual basis. Always remember though, that the more in advance the payment is, the more the savings.
As best possible, try paying your premium amounts in lump-sum payments to avoid the administrative cost of each small payment.
You are responsible for your car, not the driver
If you lend your car to someone and that person gets into an accident, you will have to file the claim with your company, not theirs. So always rethink before giving your keys to anyone.
Your insurance policy assumes that every family member is driving
Your car insurance policy covers more than just you and includes everyone in the household. This also means that your insurance will analyze the potential risk of all the driving members when setting up your policy.
You can keep the car insurance payout in some cases
Depending on your policy terms, if you’ve been involved in a car accident and receive a payout from the company, it isn’t compulsory to use that money for repairs. You can pocket the cash if you want.
