What Your Car Insurer Doesn’t Want You to Know

How hard did you have to work in finding a quality, yet affordable, car insurance plan? It’s a challenge for most people and keeping those premiums low is no walk in the park either. Car insurance companies obviously want their customers paying as high a premium as possible, but you can reduce yours by understanding how premiums are determined. Here are some of the secrets your insurance company has been keeping from you.

How to Keep Your Premiums Low

• If you can afford it, pay your entire insurance premium in full rather than making payments. Most car insurance companies charge extra fees for breaking up your premium payments, so avoid them if possible.
• Don’t let others drive you car. If you give someone else permission to drive your car, you’ll still be responsible for any damages if they get in an accident. Your rates will surely go up as well.
• You probably won’t be able to find out your cars official rating, but every vehicle has a rating that affects its premium. The rating typically revolves around the vehicle’s price and safety features.
• Thinking about switching insurance carriers? Make sure you officially notify your insurance company in writing and call to find out the specific date when your policy is over. This way you can take out a new policy without overlapping or being without car insurance.
• Studies show that most people’s premiums increase by about 40% after the first accident that they are responsible for. If you’re in a minor accident, you may be better off in the long run paying for the repairs out of pocket.
• Did your car get totaled in an accident? Check your states laws as nearly 30 states require that your carrier pays for the sales tax on a replacement vehicle. Even if your state doesn’t require it, your insurance company may take care of it for you.

Additional Resources:

• New and Used Car Loans - How to Find the Best Financing
• Insurance needn’t be too costly