Did you know that your insurance broker or company might be hiding something from you? Why do you think they’re doing that? Well, it all boils down to profiteering. Insurance companies make profit from you. The more you know about your insurance coverage, the lesser the chances of falling into their pitfalls. Before you shop for your auto insurance coverage, I would advise you to read the following points discussed below.
Auto Insurance Companies Don’t Always Recommend the Best Policies
People have varying needs when it comes to their insurances. Sometimes, insurance companies or their agents will try to sell you another product, which you don’t need at all. While there are still a lot of honest agents out there, few bad apples will try to confuse you by offering policies, which will give them the highest commissions. And since we know how gifted agents in terms of manipulating people, we could not imagine how many policyholders have been deceived this way.
It is not that difficult to tell if the agent is trying to push you to buy a specific policy. Just ask him politely how much commission is he getting; more importantly, don’t forget to ask the benefits if you were to purchase the recommended product.
Your Bad Credit Score Could Blow You Away
Many of our policyholders still haven’t realized that their credit score has something to say with their premium rates. After all, why would your credit ratings affect auto insurance? Well, as it turns out, your driving behavior relates the way you handle your finances or credit obligations. Statistics revealed that who were getting the lowest credit scores are usually the ones who kept filing insurance claims on top of the other. This is the reason why policyholders having unimpressive credit scores are hammered with skyrocketing premiums.
Premiums Are Just Too Complicated To Understand
Have you ever thought about knowing how your premiums are calculated? With all those numbers and permutations insurance companies showed you, I wouldn’t be surprised if you give up just hours of trying to solve the mysteries of your premium costs.
In general, not all insurance companies will be eager to explain to you how your insurance costs were calculated. Think about how many people will be jumping from one insurance company to the other because they have found out that their insurers are making a whole lot of money from them.
Your Insurer Won’t Pay For the Car’s Lost Value
While all insurance providers will pay to get your car fixed in no time, did you know that you are still losing money even in this setup. Imagine the value of your car before and after the accident. Do you honestly think the car’s worth would still be the same after the repair? Yes, you will be compensated as to the cost of repairs done but never the lost value of your car.
Extremely Low Estimates for Repairs and Totaled Vehicles
One of the tricks that insurance companies are using is to blow you with their ridiculously low estimates for car repairs and totaled vehicles. Apparently, you have the right to file a dispute against the said amounts, but in the end, you still end up losing against your insurer. Apparently, insurance companies would want nothing but the least amount of disbursements during claim settlements.
