•  

Things To Know Before Getting Auto Insurance

Most people assume that since auto insurance is a requirement by law, it is an easy task getting one. However, your quest for a good cover can fail if you not well-informed about auto insurance. You cannot get an affordable cover if you don’t know what to look out for. Here are things you should know before getting auto insurance:

1. Your premium will be influenced by many factors
Auto insurance underwriters will use many criteria in coming up with the premium payable. Different criteria apply to different categories of drivers. Factors such as your history of claims, number of traffic violations, and even credit score will affect the amount of premium you are charged. The type of car you drive and its value will also be factored in when calculating your premium.

2. Optional coverages are usually cheap
Most people opt to only go for the bare minimum when taking auto insurance. However, paying a little extra for optional coverages can save you money in the event of an accident. These optional coverages include things such as roadside assistance and gap coverage among others. If you can pay for them, it is advisable to go for it.

3. Premiums may vary from company to company
Auto insurance rates aren’t uniform across insurance companies. Even with all the factors provided constant, each auto insurance provider has their own criteria for assessing insurable risks and calculating premiums. It is advisable to shop around and compare rates so that you don’t end up overpaying for a cover. Decide what coverage you need so you can be able to weigh your options.

4. Letting your policy lapse can be expensive
It is advisable to renew your auto insurance a day or two before it lapses. Letting your policy run out can result in you paying more in the end, especially if you get arrested for driving without a cover. If you don’t want to pay for renewal because you are planning to change your insurer, then purchase a new policy with your preferred insurance company before canceling the current policy.

5. You can lower your premiums
The premium you are charged is based on how much your insurer estimates it will pay out in the event of a claim. You can lower your premium by agreeing to raise your deductibles. However, only agree to that arrangement if you are sure you can afford the deductible in case of an accident.
You can also lower your premiums by taking advantage of discounts by your insurer. Some insurance companies will give you a discount if you have no history of accidents, install safety features such as anti-theft devices, pay your premiums in full, and pay electronically among other discounts. Always enquire if you are qualified for a discount.

6. Reckless friends will cost you a lot
Most of the times, we tend to lend the car to our friends. Sometimes, they end up getting involved in an accident. It is your responsibility to report the accident to your insurer, not your friend’s. This will be counted as a claim on your part and may result in higher premium in the future.