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A Lowdown on Auto Insurance
Since the past two years auto insurance companies have been allowed to follow their own interest rates. What this means is that as a car insurance purchaser you will be offered different premium rates by different insurance companies for the same level of coverage. This is an important thing to keep in mind because it works to your benefit.
The auto insurance company, at their discretion, may agree to provide you additional coverage and even waive some deductible amount if you can present your case sympathetically. You may be eligible for replacement cost cover if your car model and the number of miles traveled fall within company acceptance policy.
If you are planning to purchase a vehicle on loan or lease a car, then a loan / lease gap cover is a great deal for you. The insurance company pays the amount of loan that is above the cost of the vehicle. You can ensure your automobile's health by paying a little extra premium and getting OEM parts instead of after market replacements.
If your job entails frequent traveling in rented vehicles then you should consider cover for accidents when you are driving such a vehicle. This will cover the cost of damage to the vehicle. Check if you can get liability cover for the rented vehicle. Of course, it is important to remember that every little addition to your cover will add to the premium amount. Therefore, be judicious in selecting the various aspects of your car insurance policy.
The final premium that an insurance company presents you with will depend upon the type of coverage you choose and the company's assessment of you as an insurance risk. Your driving record, vehicle maintenance, car type, area you stay and work in, and very importantly your credit rating will determine the cost of your auto insurance.
Check periodically to see if the insurance rates have increased. If they have increased then first find out if it is because of something you have done - for example getting into an accident, changing your old car for another model, shifting residence, etc. Check with the insurance company and ask for an explanation. If indeed the rates have increased, then maybe it is time to look for another insurance company that offers the same cover and coverage limits but at lower premiums.
Be aware that an insurance company cannot rate your risk profile based on your sex, nationality, marital status, religion, occupation, etc. You should also know that you are eligible for certain discounts under law if you fulfill certain criteria. This includes installation of safety features in the car, anti-theft devices, etc. If you are looking for insurance with the help of an insurance agent; then ask him to tell you in detail about the discount facilities available with different insurance companies.
