Skip to main content
Updated date:

Auto/Car Insurance - What You Need to Know

Author:
auto-car-insurance-what-you-need-to-know

1. Different Features of Auto Insurance

Auto Insurance is a very general term. Once you say that your car is insured, the immediate question would be “insured from what?”. This is because nowadays when you get auto insurance, there is a limit to what they can cover. You have to know what you need to be insured from so that you know what company you will be looking for.

Why Know the Features of Auto Insurance?

There are different types of incidents that auto insurance can cover. The problem is that not all auto insurance companies offer all these features. If you can look for one that does, you are in luck but you would have to have lots of money because that insurance company will surely be expensive. So the best thing to do would be to look for the insurance company that will offer you a feature or certain features that you think you will likely need in the future. The higher the probability that it will happen, the more reason it should be on your list.

It is very important that you know about the features that they offer so that you know when you will be able to go after your insurance company. Some people fail to do this verification, just as long as they are insured they feel that every accident will be covered by insurance. They have no idea with regards to the limit which is why they regret it afterward.

Different Features

If you are a person prone to accidents, then a collision feature should be present. This feature of auto insurance will ensure that the necessary repairs that you need will be covered by insurance. Regardless of who is the root of the accident, the insurance company will give you the necessary repairs you need. You can also look for auto insurance with the medical payments feature. You can use this as an aid when you are in a vehicular accident and you had some wounds or injuries. Everyone in your car can benefit from this feature since it will cover you and your passengers. A small number of your hospital bills will be covered by insurance. Other features you might want to check on are personal injury protection, comprehensive feature, bodily injury and property damage liability coverage, etc.

Knowing what you are signing up for is very crucial in looking for auto insurance companies. It will be best if you know as to what extent you will be covered by insurance it will help you become more careful with those accidents that are not covered by insurance.

2. Knowing What Your Auto Insurance Covers

Having auto insurance is not as easy as it appears to be. You may be simply getting auto insurance for you to share the risk of the consequences that might happen if you get into an accident, but that is just what it is in a nutshell.

When you are planning to get auto insurance, you should understand the scope of your insurance. Why is it necessary and how will you are able to determine it? The succeeding paragraphs will answer these questions for you. Why Knowing the Scope of Your Auto Insurance is Important.

It is important to know the scope of your auto insurance for one main reason so that you will know when to collect from your insurance company.

Just because you have auto insurance, it does not mean that whatever happens to your car that is by reason of accident will automatically be covered by your insurance company. It might surprise you to know that there are a number of accidents that your insurance company won’t honor and a few of these are common ones that might happen to you.

It is important that you know the extent to which you are covered so that you will be able to know when you can go after your insurance company. Knowing the scope of coverage of your auto insurance will also eliminate the opportunity that you might be fooled by your insurance company. You might be made to believe that your accident isn’t covered by your insurance, but if you know your coverage you will be able to defend yourself and fight for what is due you.

How You Can Determine Your Coverage

The scope of your insurance is normally in your contract. This means that you have to read it very carefully and as much as possible remember all the essential things that might be of use to you. Additional coverage is also usually stated in the contract. But additional coverage is mostly something that you add consciously so this might not be very hard to remember.

If you have trouble remembering things like this, you can make a summary of it. it will also be good if you keep it in your car or maybe on your phone so that whenever you might need it you will have it. Accidents may be something that does not happen every day, but it is also something that can happen any day. You would want to be prepared.

3. Surprising Factors that Will Affect Your Car Insurance Cost

You might be surprised to know that there are actually a lot of things that are put into consideration when you are charged your car insurance cost. You might think that you are paying the same amount as the rest but you are wrong with that thinking.

There is actually a standard that these companies follow when they charge you your monthly or annual car insurance cost. You might even be surprised at some of the items that are included in the list. Here are some of the surprising factors that affect your car insurance cost.

Married or Not?

They say married men drive safer compared to those who are single. There is no scientific proof to this claim but insurance companies seem to think this assumption is credible since they use it as one of the basis for the car insurance cost that they charge you. If you are married, you would most likely pay a lower amount compared to the single ones.

The reason for this according to car insurance companies is that entering into marriage makes you become a hundred times more mature than you originally were because of the many responsibilities you shoulder. In line with this, you would most likely be a more responsible driver compared to the single ones.

Credit History

Another amusing factor that most insurance companies take into account when they are deciding the amount they will charge you as your car insurance cost is your credit history.

Unlike any other accidents, car accidents are one of those that can be avoided if only a driver becomes responsible for his or her driving. They say that in whatever you do, the kind of person you really are will eventually surface. That is when you are dealing with your credits, how you deal with them will most likely reflect your personality. And because it is already in your personality, you might apply that to your driving. So if you want a lower car insurance cost, better keep that credit record clean.

How Old are You?

Age is also one of the factors considered when determining the cost of your car insurance. The bad thing is that you cannot really do anything about it. Car insurance companies have come to the generalization that younger drivers are more prone to accidents than older ones. This is why they charge higher when you are young compared to when you are in your middle age.

However, when you get too old too, you might be charged a higher amount due to the higher risk of getting into an accident because of factors that are primarily caused by the deterioration of physical health.

4. Saving on Your Car Insurance

We might think that the premiums that the car insurance companies charge us are fixed, well be surprised because they are not. They will only charge higher if you are a very risky driver. If you are the good ones, you will most likely get a difference. You can compare it to a prize, once you faithfully abide by the insurance policies and when you become a good driver, you will get the car insurance premium that is due you.

Keeping it Safe

When you drive, take good care of yourself and your car. The good thing about this is not that you will be spared the hassles of having your car repaired and having your body treated, but you will also get to save a little from the car insurance premiums that insurance companies charge you.

If you regularly wear your seat belt, you do not drive beyond the speed limit allowed and take a driver’s course or maybe attend seminars that have something to do with safe driving, then surely your insurance company will recognize your efforts by not charging you a very large amount of insurance premium.

You don’t only get to make sure that you are safe you will also be able to make sure that your payment for annual insurance premiums is cheaper.

Being Kind to Your Insurance Company

Insurance companies are like people who also have attitudes. You have to play teacher’s pet to them even though technically they are not a teacher and you are not a pet.

If you have established a good relationship with your insurance company, then they will probably charge you a cheaper insurance premium. You can start this deed by not giving the insurance companies a lot of headaches. You will be able to avoid this if you avoid reporting petty complaints that you will be able to fix by yourself. If there is nothing severe, then you don’t have to bother them.

Also, don’t play the part of the customer who always forgets to pay. You would not want them to think that you are avoiding your obligations. As soon as you have to opportunity, pay your insurance premiums. It will be better if you pay early. This might affect the number of premiums they will be charging you.

Aside from that, you will also be asked to pay a certain amount of service fee if you pay in delay. Some of the service fees are charged monthly, semi-annually, or annually. You wouldn’t want to spend money just because you forgot to pay your bills, would you?

5. Impact of “Place” in Your Car Insurance Premiums

One of the aspects that play a very large part in the company’s judgment when considering the insurance premiums they will charge you for your car insurance is the place. You might be curious as to what the word “place” is referred to and how this “place” would affect your car insurance premiums.

There are actually two particular places that will affect your car insurance premium, first is the distance to your workplace or anywhere you are expected to regularly go, and next is the place or places where you will be parking your car most of the time.

Place of Work or School

Companies consider this not because they are interested in knowing where you work, or because they have biases when it comes to the nature of your work or your school.

The main reason why this particular place, the workplace or school, or just any place you are expected to regularly visit, will affect your car insurance premium is because of the distance.

The distance from your home to any of these places will play a very big role in determining the car insurance premium that companies will charge you because they have this theory that the longer the distance you have to drive is, the more probability you might get into an accident. A simple analogy will tell us that this analysis is reasonable. So consider the distance of your workplace or any place that will require regular visits from you if you want your car insurance cost to be lower.

Parking Place

auto-car-insurance-what-you-need-to-know

You might be surprised as to why a thing such as a parking place is a big deal when determining your car insurance premium. The reason is very simple, the environment as to where you will be parking your car will determine the risks that your car is facing.

When parking place is talked about in this article, it refers to the place where your car will be spending most of its time, for instance in your garage or in the parking lot of the building where you work. If that place is a very dangerous place, like when theft is intensive there, vandalism, or any other factors that will add to the risks that your car will be facing, there is an additional cost for that.

So if you want to keep your car insurance premiums low, better look for a better place to stay in. Besides, you wouldn’t want to also stay or work in an environment that is as hostile as the one described.

6. The ABC’s in Finding the Right Auto Insurance Company

Everything is difficult when you are new to it especially when you don’t know where to start and what to do when you already have started. The same also applies in finding the right auto insurance. it may be easy to look for one, but it isn’t easy making sure that the company and insurance coverage you have found is the right one.

So to make life easier for you here is a step by step process that will be very helpful when you are finding the right auto insurance company.

1. Know If There Are Requirements You Need to Comply

Most of the states or countries have laws or rules regarding auto insurance that you might want to introduce yourself to. it would help if you know someone knowledgeable about this. But if you don’t then you have the internet to explore.

2. Make a Profile about Your Car and Yourself

You need to know your car so that you can introduce it to potential auto insurance companies. And since you will be the one probably driving that car, you need to introduce yourself as well. It will also help if you list the things you want to know.

Making these profiles will not only make it easier for you to remember important details when asked by the company, it will also help you look for a company that can best take care of your concerns.

3. Look Around

You should always start by looking around for probable candidates. In this way, you will have a lot of choices. Aside from this, it is also a good way to get you acquainted with the car insurance world.

Exposing yourself to it will be a great help. Keep a list of the companies you have visited and the insurance they will be able to offer to your car.

4. Compare

Now that you have a list of the companies and the insurance coverage they can offer you, decide whether which of these will be best for you. It is important that you are able to meet the equality of cost and quality of the insurance.

Something which costs so much must be reasonably good. Make sure that the cost also isn’t that high that you won’t be able to afford it.

5. Decide

After contemplating, make your decision. Sign the contract with the auto insurance company that won your heart, but make sure that you have read the policy over three times and that you have understood perfectly what you read. After this, make a copy that you can carry with you or keep in your car so that it will be there when you need it.

This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.

© 2020 Sid mark

Related Articles