Eight Secrets Your Auto Insurance Company Won’t Tell You


Auto insurance companies don’t tell their customers a lot of things and most of these secrets are important. By knowing these secrets a customer can not only protect his own interest but he can also save money on premium. This article will elaborate on 8 such secrets that every car owner should know about. 

The Car Model Affects the Amount of Premium You Pay 

Your car model directly affects the amount you pay to auto insurance companies. The VPN number of your car is used by the insurance company to decide how much premium you should pay but as a general rule if you have paid a lot of money for your car then you will pay a lot of money for your vehicle insurance. 

Paying in Installments Will Cost You More 

Auto insurance installments are definitely an easy way to pay the premium but a high number of installments means that you are paying more to the insurance company. With every installment you pay to the insurance company you are not only paying for the premium but you are also paying administrative fees. 

Bad Drivers Pay More 

Auto insurance companies never tell their customers that when they are at fault for an accident their premiums are increased. Insurance companies increase the amount of your premium by approximately 40% after your first accident where you are at fault and depending on the way you drive your premium may be increased even more. 

Personal Belongings are Not Insured 

If you are a victim of car theft or if your personal belongings have been damaged during an accident then you should know that auto insurance companies do not pay for these items. Cds, Dvds, additional Dvd players and other personal items are not covered by your vehicle insurance policy. 

Your Car’s Real Worth Is Not as Much as You Think It Is 

Insurance companies do not follow the Kelly Blue book value nor do they follow other standard values for your car. If your car is totaled during an accident then you will be paid a sum that is right according to the insurance company. Your car’s value is decided by the model of your car, the number of years it has been used, the number of miles it has been driven and the condition your car was in before the accident. 

You Can Add Your Child to Your Policy After He Has Been Licensed 

Most people are under the impression that they need to add their teenage child to their policy after he has reached the drivable age but the fact is that you can wait to add your child to your policy after he has been licensed. You should inform your insurance company before adding your licensed teenage child to your policy. 

You Have To Cancel Before Switching 

Most people switch to another insurer after their policy has expired but vehicle insurance companies require you to send them a written letter stating that you want to terminate your policy. If you do not send them a written letter or you do not call them then the insurance company will send you another bill. If you ignore this bill then your policy will be cancelled for nonpayment and this will go to your record which is not good.