The terminology in an auto insurance policy can be quite daunting. At times you can become confused. This article will help guide you through the complicated language of your insurance agent. Having a clear understanding of what the terms mean will help you make educated decisions while shopping for automobile insurance.
When upgrading your car by purchasing extras or replacing parts, consult with your insurer to determine whether your upgrades will be covered in the event of theft or damage to the car. Often, the company will only cover the value added to the entire car, not the actual cost of the additions.
Many people do not purchase adequate coverage for their vehicles. To ensure that you can recoup your losses in the event of an accident, have your insurance agent explain your policy and ask questions. When purchasing extras for your car like stereo systems, it doesn’t matter what price you paid, only what the appraiser is willing to value them at.
The make and model of the vehicle you buy will play a significant role in the amount your auto insurance will cost. Depending on your taste in vehicles, from a luxury model hybrid to a beat up gas guzzler, your insurance premium will reflect that taste. Go with something modest and safe if you really want to save the most money.
A lot of consumers believe that insurance premiums routinely drop at age 25. Actually, rates start dropping around age 18, so long as the driver has a solid record of safe driving.
Do not allow your insurance to lapse or your rates will increase. Lapses can easily occur when switching carriers or policies. Use caution and proper timing. When companies find out about gaps they will raise insurance rates.
Insurance companies offer a wide range of coverage and services that go beyond what is legally required. You are going to have to pay a higher deductible, but it might work out for you in the long run. If you get in a hit-and-run accident or one where the other party has no insurance, you will be out of luck unless you have uninsured motorist coverage.
Carpool or take public transportation. Insurance companies like when their policy holders show responsibility, keeping your mileage low is something they really appreciate. Try to use public transport more often, and you may be eligible for a discount.
We hope to help guide you through the “auto insurance maze” so that you arrive at the best decisions. Knowing what your choices are is a good way to gain confidence in making the right decisions.