by Ed Sneineh
Car insurance policies should be carefully read, examined and compared before you finally pick your choice. Invest your time in learning more before you decide and save money. Your learning will be a big investment for your financing.
Laws and rules of your community.
You do not have to be a legal practitioner or an insurance broker to know You may not be keen on pursuing an occupation in the field of law or you do not intend to be an auto insurance representative the essential guidelines that influence your car insurance policy. Be sure to get familiar with the rules that are applicable to the state you live in because we all know that insurance guidelines are jurisdictional, which means that, what can be applied to a specific state may not be the same as those used in another state. To learn more about the rules, visit the website of the National Association of Insurance Commissioners naic.org/state_web_map.htm and look at the rules of your own state.
Three primary things that you have to note when researching about rules affecting auto insurance policies:
1. People and vehicles we are covering.
2. Limits of coverage in case of loss.
3. Know how to request and enjoy your claims. For example if you lost your car due to a peril not insured against, then you record will be marked with a loss 'claim' experience. This advices you not to file claims unless you have the proper coverage for it, because they will count on your record, even with a zero pay off.
Be sure to read your policy and request things to be discussed if you are not sure of them. The insurance ID card is not your auto policy. The Declaration Page is not your car policy either. Your policy is the small booklet that attached with the initial package you received when you first purchased your auto policy.
Learn about the exact coverages and benefits that your policy entails. Insurance companies rely on facts, not possibilities of what might have happened when they pay claims. Insurers are very good at marketing their products but they are equally good at identifying a legal way out to escape liability when you incur a loss that needs to be paid.
Important things that you have to note are the requirements before you can file your claim and the period given for you to file the claim. You might lose your claim simply because it was filed out of time.
Know as many options as you can
Auto insurance policies may appear the same to you but they are not. Find the time to read on the conditions of each policy and compare the benefits. This may sound tedious, correct? It's true. Studying an insurance policy, especially with the fine prints and overlapping explanations may be boring, but you need to get comfortable with it, maybe once in a while. Reading your policies is good for your financial health. The one or two hours that you need to read a policy may save you thousands of dollars. There is no doubt that the biggest discount on auto insurance is the one that you get by reading the policy. In any case, reading your policy will make you sound like an expert among the mass majority of people who do not read their car policies.
Aside from the price that you have to pay for the premium, consider the credibility and stability of the company. For sure, certain companies may offer you lower premiums but what if at the time that you file your claim, the company is already filing for insolvency proceedings? Some carriers may lower premiums to get more customers, and thus cash, when they are in financial turmoil, and to; unfortunately, be in further trouble later.
Most important factors affecting your premiums
Credit Score: Good credit score will lower your premium. Insurers give quotes in consideration of several factors such as your credit score. Not all companies check credits and you may have to check only companies that do not check credits if you have credit issues.
The model and type of your car: The performance, engine size, body build, along with the value of your vehicle are the main determinants for premiums. Before buying a car, research on the car's safety rating. In addition, have a current data on what cars are prone to be car napped.
Learn more about full coverage
Be advised that your thousands of dollars of accessories in TVs, rims, and sound/video systems are not covered under the regular auto policy. The policy needs to be endorsed for these extras and you need to pay extra money. You insurance company assumes that, at the time you got full coverage policy, your vehicle has not been altered, therefore, value of the vehicle is determined without extras. Check with your agent to see if full coverage is for your old vehicle or not, and what are the benefits that you can get if you lose your car.