Einstein once stated, “It is important not to stop asking questions.” Curiosity is a reason to exist. He was correct. The more questions you ask in every aspect of your life, you will learn more about the world and how it works. This will increase your chances of success. The same principle applies to auto insurance. The more you understand your policy and your coverage, the better your chances of saving money. We will be discussing five important questions about your car insurance coverage.
Can I save money by switching to a different provider?
This is a common problem. One, you can receive a loyalty discount from the same company and be eligible for discounts such as a Disappearing Depositible. Another company might offer a better deal and give you a discount by joining them. Compare auto insurance quotes every few years, weigh your options, and then make a call. Cheap quotes are useless if you choose an incompetent or unreliable company. When making a decision, make sure you consider the reputation and reliability of each company.
Do I have too much coverage?
You will be responsible for any damage to your vehicle and medical expenses if you purchase only the minimum state-mandated coverage. Thorough insurance coverage would compensate you for a car, medical expenses, a rental, possibly loss of wages and in some cases, for psychological/emotional distress. There are some cases where it may not make sense to get more than PIP or liability. It is a good rule of thumb to not get collision or comprehensive coverage if you are able to afford to replace your vehicle.
Can I get any discounts?
This is important because your insurance provider might not give this information. There are many discounts offered by car insurance companies, including discounts for good students, defensive drivers credit and air bag and safety device installations discount, senior citizen discounts, good driver discounts, and discounts for good students. Ask, and you will receive. If you are eligible, it is.
Do I need to file a claim?
Although it may be tempting to file a claim to cover all damage to your vehicle, this is why you pay premiums each month. It is not always a good idea to file a claim for damages to your vehicle. Filing claims can increase your insurance rates. The extra $500 that you get from your insurance provider might not be worth the increase in your premiums if your damages exceed $1000. Avoid making any claims to ensure you get the best car insurance quotes.
Should my deductible be increased?
Your premiums will drop if you have a higher deductible. You should consider increasing your deductible if you wish to see a decrease in your premiums. Remember that you will have to pay the deductible if there is a claim. It is a good idea to save that amount for the day when you might file a claim. It doesn’t matter how tight your finances are, don’t touch it.
What is my policy exclusion?
This is an important question. Talk to your auto insurance provider about your policy’s limitations and exclusions. If you live in Florida, for example, your insurance provider may not cover earthquake damage. This could mean that you could get a very unpleasant surprise if you file a claim. You can then take the necessary steps to remedy the situation, such as getting earthquake insurance.
First, you should read through your policy carefully. This will help answer many of your questions. If you still have questions, don’t be afraid to ask your provider. Knowledge is power.
