You deserve to be proud of all the freebies and discounts that your agent offered you in order to convince you to purchase your auto insurance policy through his/her company. You may not have the necessary knowledge or information to get discounts and savings on auto insurance. You might feel the need to learn more about auto liability insurance and the meanings of exclusions and deductibles. To get additional savings and discounts. You might also be misled by someone who told you that your liability insurance would cover you for rental reimbursement and towing. It is possible that there was miscommunication between your insurance representative and you when you were told that you could get auto insurance discounts if you are not a smoker or take high blood pressure medication.
People who are well-informed about certain topics save time, money, frustration, and sometimes even all of the above. With a variety of insurance companies, it is cheaper to insure four cars than to insure three. This is a fact. The premiums for most insurance companies that allow certain drivers to be assigned to specific cars will drop if your policy includes three cars with comprehensive and collision coverage. If the policy also lists two young drivers and one adult, then adding a fourth car with liability coverage and setting the 17-year-old driver who has been cited for driving the fourth vehicle will help to lower the premiums. You may need to pay more if the fourth vehicle is removed from your policy. This is a pattern of a multifaceted scenario that may interest many, even those starting careers in the insurance industry.
There are very few situations where you don’t need to be an expert in insurance to find out how easy it is to save money on your policy. This scenario is common for anyone who buys insurance. This scenario allows people to choose whether they want to pay full premium or a downpayment, and then schedule a certain number of monthly payments.
Imagine that you decide to buy auto insurance with a premium of $592.00. Payment Options: You have two options. One, you can pay the $592.00 upfront or make a down payment. Then, you can pay $427.00 monthly with four payments of $114.64. This will bring the total amount to $623.56.
Financial services, which includes banks and insurance companies are among the most highly regulated industries. The state regulator often sets limits on the maximum charges consumers can pay to have their premiums paid monthly (i.e. periodically). The maximum nominal interest rate that a consumer can be charged for any outstanding balances in Illinois is 10%. The law permits setup charges to be added to the contract. A maximum of $40.00 is allowed per contract. The customer pays $31.56 ($20.00 setup, 11.56 interest) to choose monthly payments.
Although $31.56 might seem like a reasonable amount, when you consider that it is to secure a balance of $427.00 over four months, the APR of this sum equals around 43% of the money you borrowed, you will wonder if your decision was correct. The problem is made more complicated by the additional fees people have to pay for (1) late payments charges (2) contract reinstatement fees (3) extra fees for future charge cards and check-by-phone use. Extra charges of $15.00 will apply if you miss a payment, cancel or reinstate your contract, or pay by check over the telephone. Imagine if you forget to pay more than once.
If you are able to make a full payment for your insurance, you will save time, money, and frustration from receiving cancellation or late notices.
