Finding the perfect car accident insurance is not the end of your responsibility. It is still your duty to know how this system works. Otherwise, it might cost you more money than you signed up for. Here are a few tips that you need to look out for and remember.
- Make sure that every licensed driver who operates the vehicle is listed and shown in the car accident insurance policy. Including all the names of the drivers will assure them that in case they get their own car someday, they already have a history of claims. Your policy will show accident records or lack thereof. This is important because zero or minimum claims means a good record and thus lower rates for their individual insurance coverage later on. This is especially applicable to students or young professionals who piggy-back with their parents’ policies.
- Your car accident insurance becomes automatically cancelled because of non-payment or even just insufficient funds, so be sure that payments are made on time. It can get really costly when your policy lapses. There are costs to having it reinstated. Your vehicle registration and driver’s license can get suspended too when your delinquency is reported to the DMV. Furthermore, your credit score will also be affected, thereby giving you fewer options when you need to renew with your insurer. They might not even accept your business with them!
- When making a claim, your car accident insurance company will pay up to the limits recorded in a policy, yet they will decide based on its depreciated value and not on the actual value of a car or its parts and accessories. There are factors such as usage, wear & tear, and condition that are heavily considered. For instance, stolen tires while you are legally parked will be covered in your comprehensive policy, but you will not be reimbursed for its original value, of course. It is advisable to keep the original receipt of your car parts purchases and write on down the mileage of an auto at the time of purchase. This will assure you that you will be fairly compensated for your future losses. Moreover, when your vehicle is damaged, have a personal mechanic assess costs of the damage and compare it with an insurer’s quote because most of the time, these companies under-assess a claim.
- Keep cost of your insurance down and future out-of-pocket expenses by making sure your rates are proper and correct. Each US state has its own laws on minimum limits so it is best to know what your state requires.