Many people don’t take a great deal of notice of their car insurance and, when the time comes for their auto insurance to be renewed, they simply renew it with their existing insurer. If you don’t shop around for car insurance, then you'll end up paying more than you need to and, if you don’t check the small print on your policy, you might actually not be insured at all. So, if you don’t give a second thought to your motor vehicle insurance, check out these facts and tips about car insurance that might surprise you.
1. Pay your insurance premiums in one go
It may be convenient to pay your car insurance in twelve monthly payments. It'll nearly always be far more expensive than paying the whole amount up front. Most insurers add an exorbitant price for spreading the payments. It could cost you as much as 30% more.
2. Don’t overdo the excess
A lot of people get caught out by agreeing to an insurance excess over and above what they can really afford to pay. Yes, a high excess will reduce your car insurance premiums. Don’t forget that, if you've an accident, you're going to have to find that cash for repairs.
3. Tell the truth to your insurer
Be honest about what you use your car for, where you park it. Who's going to drive it. If you say that your car will be locked in a garage overnight. it's stolen from the street outside your home, you could be in for a nasty surprise when you come to make a claim.
4. Check how comprehensive your fully comprehensive cover really is
The word ‘fully’. In fully comprehensive can mean different things to different insurers, especially if you opted for the cheapest policy that you could find. Typically, the cheaper car insurance policies won’t include a courtesy car, windscreen cover. Legal cover. It’s worth checking your policy to see exactly what you're getting for your money.
5. Don’t make a claim unless you really have to
If you've a minor accident, it's very often cheaper to pay for the repairs yourself than to claim it on your insurance. You should still tell the insurer about the accident, because that's often a policy requirement. Claiming may well result in an increase your premiums and excess.
6. Your premiums can still rise, even if you've protected your no claims bonus
If you've an accident, your premiums could still rise, even if you've protected your no claims bonus. Your percentage bonus may well stay intact. The underlying cost of your insurance will rise and, therefore, you'll pay more.
7. Always take photographs if you've an accident
If you do have an accident, however slight the damage may seem, always take photographs of both your vehicle and the other persons. Unfortunately, there are a lot of dishonest people who'll exaggerate their claims to their insurance company and lie about the circumstances of an accident. If you can, get the contact details of any witnesses too.
8. Don’t just automatically renew, shop around first
Insurance companies offer their best deals to new customers. it's always worth shopping around for your car insurance. You can get your insurance broker to do for you. Check out a price comparison site. Always get several quotes before you decide.
9. Always notify your insurer of any changes in circumstances
Don’t forget to notify your insurer of any changes in circumstances. You could invalidate your insurance. That includes moving home, changing jobs, any modifications you make to the vehicle and even if you've started driving your car to work.
10. Don’t rely solely on comparison websites for the best deal
Don’t forget that not all the insurance companies allow their details to be published on price comparison websites. To enable these companies to compete, they often offer better deals than you'll find on the comparison sites.
You might have heard of auto insurance agencies and industry experts talking about full auto insurance coverage, and how necessary it is to buy this type of policy if you need comprehensive cover. The necessity of purchasing this policy is certainly considered crucial and agreed upon, but it is also important to take in mind that the policy is not inevitably required by all states. It is totally your decision whether you want to purchase the policy or not. In simple words, full auto insurance coverage is defined as a policy, which covers first party or third party injury to...