Automobile insurance is something that all drivers need. It will help pay for damage to your car, other's cars, damage to property, and medical expenses that may occur through an accident. Auto insurance can be tricky to purchase and a lot of insurance concepts might not be clear to the average consumer. To help you become more familiar with the auto insurance world, below are a few different facts that you may not know that can help you better understand the world of auto insurance.
1. Don't set it and forget it. Many people will find a great deal on auto insurance and will make a purchase. They will then have the same auto insurance for many years as the policy renews. This results in drivers overpaying $368 dollars each year. If you would take a few minutes each year and compare auto insurance rates from different companies, you may just be able to save a lot of money and get better coverage. Do not set your insurance policy and then forget about it. You may also want to change your insurance coverage as your situation changes as well. By selecting liability insurance instead of comprehensive insurance for an older vehicle, you can save a lot of money.
2. Credit Rating and Insurance Rates. In many states, insurance companies may look at your credit history to determine the insurance rate they will give you. If you have a history of accounts in collections, payments that are past due a large amount of debt or other negative reports, you may be charged higher premiums. On the flip side, if you have a lot of positive reports like a long credit history and accounts in good standing, you will have lower premiums. It is important to keep your credit in good standing so that you can get the best prices on insurance policies.
3. Save Money Up Front. With many insurance companies, you may be able to save money if you pay the full amount of the premium up front instead of paying it over the course of six months or a year. Some companies will charge an extra fee to break up the payments to a monthly schedule. It may not seem like a big deal but over the course of the year it can really add up to big savings.
These are just a few of the things that you may not be aware of when it comes to auto insurance. By being better equipped with this knowledge, you will be able to save more money on insurance and take the proper precautions to get the best deals possible.