Understanding the simple mechanics of auto insurance can be a herculean task, let alone understanding the puzzles surrounding it. Puzzles like the guidelines, policies and procedures of the many insurance carriers of today. Outlined below are some facts you need to know about auto insurance so you can have adequate arsenal at your disposal when looking forward to purchasing an auto insurance.
1. YOUR CREDIT HAS AN IMPACT ON YOUR INSURANCE RATES:
Whether you like to accept it or not, your credit history will have an impact on the insurance rates the insurance company will give to you.
Insurance carriers and companies discovered that an individual's characteristics predict the possibility and likeability of such individual having insurance claims. They may use scores that are credit-based in addition with other factors to assess the possibility of claims submitted. These factors may include age, driving records, claim history, place of residence, brand of car and the average miles driven, etc. As acceptable practice, strive to improve your credit, keep a close eye on your credit report and contact the credit bureau to clear up any errors.
2. BRAND LOYALTY CAN COST YOU
If you have a careless attitude about auto insurance, you might want to retrace your steps. Years ago, insurance companies took stock of factors when calculating your premiums. Today, that list has grown to a confusing maze of requirement causing insurance rates to be at odds greatly from provider to provider.
Instead of allowing your policy to renew itself automatically, compare and shop once a year to ensure you're getting the best auto insurance rates. Some companies provide policies directly to consumers, while others sell policies through insurance agents or brokers. An good place to start is by getting auto insurance quotes online, which could save you money. If you're afraid that lower rates mean less coverage or poor service, don't be. Today, there are plenty of insurance companies that offer affordable premiums, well-rounded coverage and excellent customer service.
3. KNOW THAT IF YOU STOP MAKING PAYMENTS NOW, YOU'LL EVENTUALLY PAY THEM AT THE END OF THE DAY
If you think you can stop making payment by changing your car insurance company, think again. Of course, your policy will be cancelled, but your existing insurance company could report you to the credit bureaus for non-payment, damaging your credit score in the process. What's more? Your insurance history will reflect the cancellation which may in turn cause a new provider to decline your application or charge you higher premiums in the future.
So instead of changing your insurance company, make sure you complete all the necessary paperwork with your existing provider, such as a policy cancellation form at the right time so you can be starting your new policy on the date your old policy ends or expires.
4: YOUR CAR INSURANCE COMPANY CAN CANCEL OR REFUSE TO RENEW YOUR POLICY AT ANY TIME
Your insurance company can decide to cancel or refuse to renew your policy at any time if you violate one or more of its guidelines during your policy period. Things such as failing to pay your premium on time, losing your driver's license due to suspension or revocation, submitting too many at-fault claims, or misrepresenting your driving history or past insurance claims could all be reasons for cancellation or non-renewal.
In either case, your insurance company is obligated to notify you in writing within a timeframe legally required by your state. When it comes to cancellation, your insurance company is required by law to state the reason, but its not so with non-renewal. If you want a reason but aren't provided with one, you must send your insurer a written request. If you believe you've been unfairly treated, you may have legal support or a way out through your state's department of insurance. Also, don't forget about your "binding period",: the time when your insurance company is especially conscious of your risk level. The binding period usually occurs within 60 days following your auto insurance application. If your insurer finds any inconsistency on your application, on your driving record or with your credit, it can cancel your policy.
5: PAYING FOR YOUR PREMIUM IN FULL COULD SAVE YOU MONEY
You may be surprised to know that most car insurance companies charge an administrative fee to split your premium payments into installments, such as paying every six months, every three months or every month. The more you divide your payments in installments, the more these "convenience fees" add up, and before you know it, you will be paying substantially more than you thought. Bear it in mind that for each method of installment payment you choose, such as automatic bill pay or pay-by-phone, there may be charges attached to it.
Remember to ask your provider what its administrative fees are. If it makes financial sense and you can do it, pay your premium up front and in full. Not only will you avoid the additional expense, you won't have to worry about missing a payment, or being late on payments, both of which could be grounds for cancellation. Other factors, such as the brand of car you drive, can cost or save you money on car insurance as well.
1. YOUR CREDIT HAS AN IMPACT ON YOUR INSURANCE RATES:
Whether you like to accept it or not, your credit history will have an impact on the insurance rates the insurance company will give to you.
Insurance carriers and companies discovered that an individual's characteristics predict the possibility and likeability of such individual having insurance claims. They may use scores that are credit-based in addition with other factors to assess the possibility of claims submitted. These factors may include age, driving records, claim history, place of residence, brand of car and the average miles driven, etc. As acceptable practice, strive to improve your credit, keep a close eye on your credit report and contact the credit bureau to clear up any errors.
2. BRAND LOYALTY CAN COST YOU
If you have a careless attitude about auto insurance, you might want to retrace your steps. Years ago, insurance companies took stock of factors when calculating your premiums. Today, that list has grown to a confusing maze of requirement causing insurance rates to be at odds greatly from provider to provider.
Instead of allowing your policy to renew itself automatically, compare and shop once a year to ensure you're getting the best auto insurance rates. Some companies provide policies directly to consumers, while others sell policies through insurance agents or brokers. An good place to start is by getting auto insurance quotes online, which could save you money. If you're afraid that lower rates mean less coverage or poor service, don't be. Today, there are plenty of insurance companies that offer affordable premiums, well-rounded coverage and excellent customer service.
3. KNOW THAT IF YOU STOP MAKING PAYMENTS NOW, YOU'LL EVENTUALLY PAY THEM AT THE END OF THE DAY
If you think you can stop making payment by changing your car insurance company, think again. Of course, your policy will be cancelled, but your existing insurance company could report you to the credit bureaus for non-payment, damaging your credit score in the process. What's more? Your insurance history will reflect the cancellation which may in turn cause a new provider to decline your application or charge you higher premiums in the future.
So instead of changing your insurance company, make sure you complete all the necessary paperwork with your existing provider, such as a policy cancellation form at the right time so you can be starting your new policy on the date your old policy ends or expires.
4: YOUR CAR INSURANCE COMPANY CAN CANCEL OR REFUSE TO RENEW YOUR POLICY AT ANY TIME
Your insurance company can decide to cancel or refuse to renew your policy at any time if you violate one or more of its guidelines during your policy period. Things such as failing to pay your premium on time, losing your driver's license due to suspension or revocation, submitting too many at-fault claims, or misrepresenting your driving history or past insurance claims could all be reasons for cancellation or non-renewal.
In either case, your insurance company is obligated to notify you in writing within a timeframe legally required by your state. When it comes to cancellation, your insurance company is required by law to state the reason, but its not so with non-renewal. If you want a reason but aren't provided with one, you must send your insurer a written request. If you believe you've been unfairly treated, you may have legal support or a way out through your state's department of insurance. Also, don't forget about your "binding period",: the time when your insurance company is especially conscious of your risk level. The binding period usually occurs within 60 days following your auto insurance application. If your insurer finds any inconsistency on your application, on your driving record or with your credit, it can cancel your policy.
5: PAYING FOR YOUR PREMIUM IN FULL COULD SAVE YOU MONEY
You may be surprised to know that most car insurance companies charge an administrative fee to split your premium payments into installments, such as paying every six months, every three months or every month. The more you divide your payments in installments, the more these "convenience fees" add up, and before you know it, you will be paying substantially more than you thought. Bear it in mind that for each method of installment payment you choose, such as automatic bill pay or pay-by-phone, there may be charges attached to it.
Remember to ask your provider what its administrative fees are. If it makes financial sense and you can do it, pay your premium up front and in full. Not only will you avoid the additional expense, you won't have to worry about missing a payment, or being late on payments, both of which could be grounds for cancellation. Other factors, such as the brand of car you drive, can cost or save you money on car insurance as well.
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