Jun 27, 2017

You have got the car that you have always wanted to drive and your next step is getting an auto insurance. The plan looks sound.

But are you sure you know everything about auto insurance policies?

Maybe you could be missing a trick that could help you save some  cash, or it could be that you are about to be taken for a ride, just by blindly entrusting your car insurance with everything. Whatever the case, it’s better to take a seat and research. There could possibly be some facts,  that you are unaware of,  that may help you when getting your car insured.

1.    They Do Not Provide for Everything

Car insurance policies do not cover the cost of items, which were in your personal possession, and are lost to a car theft.  Personal items may include a laptop, some cash in that briefcase or an expensive gadget. For you to lay claim over the loss, you need to consult your homeowner's policy rather than the car insurance.

What, your home owner’s policy does not cover it? Contact the provider and talk to them  now. 

2.    Getting Away!

If you are someone who regularly shops for a better deal to upgrade your current car insurance policy, then you are one of the wise ones.  If you  jump onto a new policy  without cancelling your previous one , then we take what we just said back. If you think you can get away with a new policy without cancelling the old one, your previous provider may end up reporting you as a defaulter to credit agencies.

3.    Look For The Discounts!

There are plenty of ways to earn discounts on your auto insurance policy. Some companies offer discounts if you are associated with a certain profession, while others tend to be more flexible towards people who apply through group insurance policies. Apart from that, you can also seek multiple policies from the same provider and chances are that you will get  a great deal on your policies.

4.    Avoiding the Administrative Fees

Cancelling your auto insurance policy over a period gives you leverage to work within your budget while you pay off those premiums but it also adds up the payments that you will be parting with. Usually, auto insurance providers charge administrative fees, based on the structure of your payments. If you can shorten the period of payment or pay it in full from the very start, you may end up avoiding the burden of these administrative charges.

5.    The Bounty Cars

Some people believe that having a car of a particular color can help you in getting low premium insurance policy. This is not necessarily the case  It’s not about the color but it is actually about the car you own. There are some cars in the industry which auto insurance providers consider as the bounty ones and offer you low premiums on them. The secret is something that has never been fully disclosed but generally the understanding is that  the horse power, and some special edition cars, that fall into this category.

6.    Business Support

If you have been using your car for business purposes, you can leverage this usage to apply for tax deduction. All you need to do, is to calculate the percentage of the car usage that has been attributed towards the running of your business and using that percentage you can gain incentive on your premiums.

Having auto-insurance for your vehicle acts as a safety net and helps you cover for any future losses, but it could also end up costing you if you don’t know which track you are driving on.

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