Even if you have had auto insurance coverage for many years you may still be confused as to what the industry is all about. There are some things that you may not know about this type of insurance. Although you may be worried about the learning curve, once you begin to search for answers you will find that everything is coming to you rather easily. Remember, auto insurance companies want to make things as simple as possible on their customers.
Here are three things that many people don’t know about auto insurance:
- How much of a deductible should I have? This is a very common misunderstanding. You can choose whichever deductible you want, as long as it meets the requirements of your state. That being said, a higher deductible means a lower monthly premium. At the same time, this means more money out of your pocket in the event of a claim. At the minimum, you should have a $500 deductible.
- How do I make a claim? Remember, you are buying auto insurance because you want to keep your vehicle safe and in good condition. If you need to file a claim it is important to know what goes into this. If the time comes, call your provider and have them walk you through the process.
- Am I paying too much? Many people ask themselves this question. In fact, it is one that bugs the majority of consumers. If you want a good quote, you must know what you are paying for. This includes: the state of Florida, the neighborhood you live in, your current financial situation and your wants/ Needs for your policy. If you are not sure of these details, it may be a good idea to hire a financial planner.
- How do I know the company I pick will pay my claims? This is a very essential question for those who have not had to use their insurance in the past few years. You must also know that not all companies pay for claims the same way.
- Do I have someone else cover my car? If you are planning to do this, find out if you will be covered by your insurance company first. Only after you confirm this do you want to cut costs.
- Cancel my old policy. This is the trick that so many people do. They wait until their old policy is about to renew and then cancel it. You are not to blame for this, however, as car insurance companies do this as a way of gathering up the deserved premium that should have gone into your account in the first place. It is therefore very important that you cancel your old policy before doing this.
- I am buying a new car, but my insurance is expensive. Is there anything I can do? First of all, the type of car you choose will cut down on your insurance rate. The color is an important example. If you choose a car with a bolder color like red, your insurance will more than likely increase.
- How do I know the company I use is reliable? The majority of the companies out there are reliable. However, not all of them will do what you wish for. It is very important to know for what you are paying right now.