What your auto insurance company is hiding from you


The model of car you own affects your insurance premium

Most people are aware that expensive cars attract higher premiums, but they aren’t aware that some old cars can also attract a high premium. Cars which are popular amongst burglars and thieves are high on the list of cars that are expensive to insure too; be sure to ask your insurer if your car is in this list before you buy a used car.

Monthly payments attract installment fees

An average customer is very pleased with the option to may their insurance premium in monthly installments and will not be bothered to ask if there are any financial implications if he or she chooses to pay monthly installments instead of one big lump sum annual payment. The fees can vary from company to company and you should always ask them what your liability will be should you opt for a monthly payment plan.

Things in your car aren’t covered by insurance

Save for a few insurance policies that provide cover to women for groceries they might have just purchased items in your car are no covered in the event of theft of your car. Damages caused to things that don’t belong in your car during theft are also not covered; so it’s best to not leave any valuables in an unattended vehicle.

Your driver’s record will reveal more than you want to

Your driver’s record will reveal more than you want to about your driving style, past and all the offences you may have collected over the years! The very first accident that you meet with pushes your premium up by 40%. A premium of 1000 will immediately become 1400. Some companies are a little more lenient and increase your premium by a smaller amount, but don’t count on it. Some companies do believe in forgiving the first accident and believe everyone has days on which things don’t go their way. Although this forgiveness is not just handed out and you will need to qualify for it and also prove that you are a deserving candidate.

If you lend your vehicle to a friend who crashes it, the accident is on your insurance record and will affect your premiums adversely for the next five years or so.

Teenagers don’t need to be added

Many parents buy insurance for their teens as soon as they come of age, which can be avoided until needed. If you have a teen ager who is of age and has a drivers license that doesn’t mean you need to buy them insurance, as long as they don’t drive that is. Many parents find it a good practice to let the teen earn their policy money in part time jobs and chores, it teaches them responsibility and also the value of money. Another benefit is the teen has their own policy and any mistakes they make will not affect your premium.

Vehicle evaluation

You need to get quotes on your car and verify that the insurance companies estimated cost of your vehicle is appropriate. The lower the value of the vehicle the lower your payout after a claim, so ensure that you get an honest figure. You can approach three used car dealerships; be sure to tell them that the estimate is for insurance porpoises and you are not selling the car, this step will ensure that they don’t inflate your estimate.