subject: Auto Insurance- What They Dont Tell You [print this page] I think we can all agree when I say that auto insurance is an intricate subject. You can never know too much and thats the scary part. In fact, you might not even be a first time buyer to realize that you dont know enough. But thats okay. Were here to help you understand it just a little better.
Personal belongings in your car are not covered by auto insurance
You hear about this often. A car gets totaled and personal belongings in the vehicle get destroyed. Or your car gets stolen and along with it, you lose your laptop, mobile phone etc. People think that their auto insurance covers these losses, but in reality its your homeowners insurance that pays for this. Carrying a rider can be a good option if you are one to travel with expensive equipment.
If you pay in advance, youll save some big bucks
Most people find it convenient to pay their car insurance premiums in monthly installments. What car insurance companies dont always tell you is that they charge you a small administrative fee along with your monthly installments. These administrative fees add up over a period of a few months. As a result, you end up paying more than the original amount of your policy. To avoid this, when getting car insurance quotes ask your insurance provider about their administrative fees and if possible try to pay your premiums annually or every six-monthly.
YOUR policy covers your vehicle, even when you lend it to someone
Say you lend your car to your friend or relative and he/she meets with an accident, it is YOUR policy that pays for these damages. Not your friend or relatives insurance, but yours that pays for the accident. Think twice before lending your car to someone. Always make sure you lend it to a responsible, licensed driver.
Always choose a higher deductible. Youll be glad you did.
Did you know that a higher deductible results in lower premiums? Well, they do. But heres the catch. Dont set an extremely high deductible in hopes of paying a low premium. You dont want to set an amount so high, that you are unable to pay it in case of an accident. Set a reasonably high amount that you can comfortably pay should you meet with an accident.
Review your policy annually
At the time of signing the papers, you might have thought that you had the best possible policy. While that might be true at THAT time, things change and with time, so does an ideal policy. Life changes such as getting married; retiring, adding kids to your policy etc could affect your premiums, so it is advisable to review your policy, make sure you still have the right kind of coverage to fit your needs and see if theres anything thats happened in the last year that could affect your premiums.
Armed with this knowledge, youre just a little bit wiser and will know what to do next time when buying insurance. Safe driving!
by: Bethany
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