You have bought yourself a new car, done your homework and got your car covered and insured in the best way possible. That is a good way to start, but some things about the insurance business stay hidden to most consumers. Some facts you do not realize till you actually are in a position where you need to know of it. For example when it comes to cancelling an insurance policy due to any number of reasons- transfers to a new state, selling your car or you just do not like the service, there are precautions to be followed. Firstly make sure you intimate the company clearly and get acknowledgement that they know you are terminating your policy. If you just stop paying, they will bill you in advance for next month and if you do not pay them, your credit sores get affected.
Standard method in cancelling the policy involves a written communication stating the date of cancellation clearly to the insurance company at any point. While coverage may terminate at the end of your policy, the policy itself is not terminated until you ask formally for it to be cancelled. You will not know of this until you are faced with a large bill. When you cancel your insurance policy intermittently it is not going to help you. You need to be sure you have clear reasons for it and doing it often will put you in the high risk category when insurers look up your past history. Make sure you do all your procedures through official channels according to a set time to avoid this problem
Another area most people neglect often is gap insurance. What is gap insurance all about is the first thing a consumer needs to know. This refers to the coverage for what traditionally auto insurance companies do not pay for. It is a difference between the payment the insurance company makes and what you owe the finance company when you get the car on a lease. If you have gap insurance then you can be free of all worries and know you are safely covered whether your car gets stolen or a tree falls on it. In order to make sure your gap insurance policy is valid, you will also need to take out collision and comprehensive coverage.
When you have been in an accident, you may want to just wash your hands off it and wait for the insurance company to return your car to you in full shape. Well your problems are just beginning, you need to file a claim, wait for the insurance adjustor to determine the cause and then also decide whether you want original equipment manufacturer parts or aftermarket parts for your car. Of course the insurance company will say the difference is negligible and opt for the aftermarket parts, this however will reduce the resale value. Just make sure you are clear on what you want for your car. If you are not concerned about a resale you can opt for the latter, but if you do not specify, you will end up with a penalty fee and expensive OEM parts. This facility is given free of cost by some insurance companies, but the premiums will generally be higher.