Follow the 10 commandments of car insurance in order to save money and obtain the best coverage.
- Be Honest: Honesty is the best policy when it comes to car insurance. Trying to save money by omitting information or twisting the details of an accident when filing a claim is considered insurance fraud. Being dishonest could result in your insurance claim being denied, or you could even face prosecution.
- Know and Understand the Coverage: You cannot properly purchase and use a car insurance policy you do not understand. Do a little research before selecting the coverage for your vehicle. Lots of different coverage is available. Learn what each coverage protects against.
- Determine the Right Deductible: Deductibles can be tricky. You want to select a deductible which is low enough to be affordable at the time of a claim, but high enough to reduce the overall cost of insurance. Keep your emergency fund in mind when selecting your deductible. It can be very frustrating to sustain damage to your vehicle and not be able to get it repaired because you cannot afford your deductible. Deductibles are on the rise for many drivers to make car insurance a little more affordable.
- Purchase Only the Coverage You Need: Do not over insure your car. Know your car’s value by checking Kelly Blue Book. The cost of comprehensive and collision should not be a major portion of the value of your vehicle. Remember you have a deductible too. Give some consideration to extra insurance coverage like roadside assistance and car rental. Try to determine if the cost is worth the risk. Look for alternatives like borrowing a friend’s car.
- Check Your Discounts: It never hurts to double check your discounts. It is possible to qualify for new discounts during your policy period. For instance, if you purchase a home and insure it through your car insurance carrier your car insurance and home insurance are most likely eligible for a multi-policy discount. Discounts can be added at anytime.
- Maintain a Good Credit Score: A good credit score is becoming more and more important in the insurance world. The difference in premium can be shocking when comparing the insurance rate of a person with bad credit verse one with bad credit. Insurance carriers have statistical data which shows people with bad credit are more likely to file a claim. Whether you agree or not, as of right now credit is a car insurance factor in most states. As your credit improves, your car insurance rate should improve. Changes will only be reflected when your insurance policy renews.
- Know Your Agent: Getting to know your insurance agent can prove to be very beneficial. The better your insurance agent knows you and your family’s needs, the better he or she will be able to guide you to the best insurance policy. Your insurance agent will be more likely to work harder for you if he or she knows your story.
- Pay On Time: Expect to pay late fees anytime you pay your car insurance late. Some insurance carriers offer one to three days as a grace period with no fee, but anything beyond that and the fee could range from $5 to $15. For many people, it is very difficult to catch up once a late payment is made. Paying the late fee month after month gets very expensive. Paying on time could save you over one hundred dollars a year in fees.
- Never Let Your Policy Lapse: A lapse in car insurance can be very expensive. Get into a car accident while your policy is lapsed and you could be looking at serious financial consequences. If you are at fault you could be held liable, and if you are not at fault you could still be facing some serious fines for driving without insurance. Beyond liability and fines you will also pay more for insurance when you go to purchase it again. If at all possible, never let your car insurance policy lapse.
- Review Your Policy: It can definitely help to give your car insurance policy a once over. Maybe you need to refresh your memory as to what coverage you have selected. Maybe you want to see what discounts are on your policy. Maybe you are curious when your speeding ticket falls off. All of these issues can be settled by reviewing your policy. Taking a quick look could save you money and possibly confusion at the time of a claim.
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