Buying auto insurance is a mandatory step which all car owners must take to protect their own interests. Most car owners do not know a lot about vehicle insurance while they register for insurance and as a result of lack of knowledge car owners often lose out on benefits. This article will elaborate on four questions that car owners should ask their auto insurance company before they sign the agreement.
If My Car is Totaled How Much Will I Get?
Most car owners are under the impression that their insurance company will pay them the market value of their car if it is totaled but the true answer shocks most people. Auto insurance companies have their own formula to calculate the worth of your car and the amount they will give you is most likely not even close to the amount you are imagining. Before signing up with any vehicle insurance company you should find out the amount the company will pay you in case of severe damage to your car and if the amount they quote is not acceptable then you should find a different insurance company.
What Liabilities Does this Policy Offer?
Most states have a list of mandatory liabilities that all car owners must have. Some of the important liabilities that car owners should have include the underinsured motorist or uninsured motorist, bodily injury liability, property damage liability, collision cover and comprehensive cover. Before signing the agreement you should find out what all liabilities you policy covers and what will be the additional cost for mandatory liabilities. After calculating the total amount you should decide if the policy you are opting for is worth it or not.
What All Auto Discounts Am I Eligible For?
Most car owners are under the impression that the safe drivers discount is the only discount they are eligible for but the truth is that there are many other discounts that auto insurance companies offer. If your child is getting good grades that are equal to or more than a B average then your teenage child is eligible to get up to a 20% discount on his vehicle insurance. Another discount that is offered to teenagers and people above 55 is the defensive driving class discount. Auto insurance companies offer discounts to people of these categories if they opt for defensive driving classes that are in the DMV list.
Does The Insurance Company Pay for Original Replacement Parts?
While buying car insurance many car owners think that their insurance company will pay for original replacement parts for their car but the truth is that not all insurance companies pay for original replacement parts. While all insurance companies do get replacement parts your policy will determine if you get original parts or not. Some people do not mind it if they do not get original parts but it is always good to know what you are getting into. You should also find out what parts are covered under your policy and which parts you will need to buy on your own. Personal items like Cds, Cd players or any other personal items are not covered under your policy. If any of these items have been stolen from your car or if they have been damaged during an accident then you will have to pay for them from your own pocket.