Cancellation of insurance
When changing insurance companies many people make the mistake of not notifying their insurance company. Not paying your bills is not a means of cancelling your insurance; when you change your insurance provider to an old one, you technically have two covers until you cancel the old cover. The insurance company will keep billing you and send over recovery agents to get their premiums; if you refuse to pay your policy is cancelled and this whole episode goes onto your credit record. Always call and cancel your insurance, better still email then with a carbon copy to yourself as evidence.
Stacking
If you’re involved in an accident with an uninsured driver you can claim damages under uninsured and underinsured cover from more than one insurance policy. This practice helps you recover all your losses by multiple claims; however it is forbidden in most states so ensure it’s legal in your state before you attempt it.
No sales tax?
If you have been in a car crash and your car was totaled, many states don’t require you to pay sales tax on the replacement since you are technically not buying it. This is applicable to new and old cars. Always ask the insurance company, they will never offer it to you unless you ask.
Diminished value
We all know that after an accident your insurance premium increases; however almost no drivers are aware of the fact that your vehicles value diminishes after an accident and this diminished value is what you can be paying the premium on. In 14 states you can file a claim with your auto insurance company for the loss that you have incurred due to the diminished value. If you weren’t at fault in the accident your chances of winning litigation against the other party’s auto insurance company are quite high.
Evaluate your car
A totaled car is worth more than the insurance company lets the owner believe. Quotes are often requested from second hand car dealerships which operate in the suburbs thus giving a lower estimated value which is in the complete benefit of the customer.
Request the insurance company to provide you with the details of a dealership you can buy a similar car at the price they suggest if you don’t find the value to be appropriate. Request quotes in writing from the three nearest dealer and request the insurance company to pick something out for you within that range.
Credit score
It’s simple as pie; if you have a good credit rating, you will pay lower premiums. Almost all insures pull your credit history to find out what kind of a credit rating you have. A customer with good credit scores will qualify for multiple discounts as they tend to me more responsible and less likely to file a claim.
