When considering auto insurance there are a lot of ideas and suggestions being tossed around in cyberspace and in the real world. With that said, we are always looking to clarify and explain some tips about your auto insurance. Here are 7 things you should know about your auto insurance:
1) Some of the Really Helpful Coverages are Inexpensive!
There are several coverages on your policy that you make choices about - collision and comprehensive, rental car coverage, towing protection. Some of those coverages, especially towing and rental reimbursement are inexpensive for the value they provide. Definitely something to consider when looking at your insurance.
2) A Lot of Things Can Affect Your Car Insurance Rate
Obviously, your driving record and claims history impact your rates. Insurance companies also look at zip codes (living downtown provides more risk than a rural neighborhood) and your credit history (people with higher credit scores often file less claims and pay their bills on time more regularly). All of this means that your rate my differ from your friends or coworkers.
3) If Your Policy Lapses, It'll Cost You More in the Long Run
Most insurance companies prefer that you have continuous coverage - being licensed and uninsured is frowned upon. Even if you're planning on switching companies, make sure you keep your old coverage in place until you have your new policy in force.
4) Higher Deductibles Can Mean a Lower Premium
I've discussed this before, but a higher deductible means you are willing to shoulder some of the costs of a claim, and insurance companies reward that with a lower premium. You shouldn't, however, raise your deductible too high or you risk digging deep into your own pockets.
5) Look for Discounts!
Is your college student far away? Are their grades good? Do you have multiple policies with the same companies? Can you afford to pay in full? Would you be comfortable signing up for an EFT plan? All of these questions can lead you to discounts!
6) Coverage Affects What You Pay
Like I mentioned above, the coverage levels you choose impact your premium. But does that mean you should put yourself at financial risk in the event of an accident? Definitely not! The trick is to find the balance between an affordable premium and great coverage (and hint: we can definitely help with that!)
7) The Car You Drive Can Impact Your Rates
Insurance companies look at the safety ratings of the cars their insureds drive...and the safer the car, the less expensive it might be to insure. Just something to consider...
While these don't cover all of the finer points of deciding the best auto insurance for your situation, they are some interesting things to consider when looking at your coverage. Of course, if you have any questions, call us - that's what we're here for!