- January 22, 2019
- By James Nick
- In Blog
Many people think of auto insurance as a daunting task. The long paperwork, unfamiliar terms, and legal rules and regulations are definitely one that could confuse many.
But with time, auto insurance companies are terming the process of auto insurance a less hectic and daunting one. And we’ll show you just why.
Auto insurance involves a lot of types, limitations and of course those high premiums that add expenses like no other. So for beginners, we’re outlining some simple pointers regarding everything you need to know about auto insurance today.
Not all helpful coverage comes at a hefty price tag
Believe it or not, not all useful coverage is deemed expensive. Some of the most helpful ones such as comprehensive, roadside and motorist come at nearly half the costs of the usual liability and collision protection. And they do provide immense protection too
There are a number of factors that control your auto insurance rates
There are a whole series of factors that control your auto insurance rates, not just the vehicle you drive. Be it age, job, married status, driving record and credit history- a total of five years worth of history is checked before coverage is granted.
Insurance costs vary from one company to the next
You have heard of the term shopping around for quotes and yes, it truly does make a big difference. This is because one company may be fooling you while the other may not. Always compare and contrast to get the best value for your money.
Policy lapse can lead to higher payments in the long run
Policy lapse is deemed as a risk status by insurance companies. For this reason, it’s so important to buy a new policy plan before canceling the last one to avoid such details being recorded into your history records.
High deductibles result in lower premiums
It’s a known fact that high deductibles will always reduce your premiums. This is a wonderful way of gaining upon a great bargain but remember you don’t want to raise your deductibles so much that you can’t afford to pay them out in the case of an unfortunate event.
Take advantage of insurance discounts
Be it teen discounts, group policy discounts, good driving records or simply serve in the armed forces, many companies provide clients with a great series of discounts. It’s important to ask about them when signing up to avoid missing on a fabulous discount opportunity.
Your coverage affects your payment
Liability coverage is a form of auto insurance that is termed expensive yet necessary at the same time so reducing that could do you more harm than good. However, ridding yourself of coverage that’s not necessary can affect how much you pay. An example includes owning an old vehicle and hence ridding yourself of expenses for high collision and comprehensive coverage.
The vehicle you drive can take a toll on your premiums
The more expensive, rare and dangerous the vehicle, the higher will be the premiums. At the same time, the older, more common and secure your vehicle is, the lesser the premiums charged by auto insurance companies.