When it comes to auto insurance, there’s more than meets the eye. While insurers provide essential coverage for your vehicle, there are aspects they might not openly discuss. Here’s the insider scoop on what your auto insurer might not tell you:
Your Credit Score Matters
Auto insurers often use your credit score to determine your insurance premium. Even with a clean driving record, a low credit score might lead to higher rates. Insurance companies have the perception that people with lower credit scores are more prone to file claims. Therefore, it is important to maintain a favorable credit score to ensure that your insurance expenses stay reasonable.
Loyalty Doesn’t Always Pay Off
Staying with the same insurance company for years might not necessarily save you money. Insurers often offer discounts to attract new customers, leaving loyal clients with higher rates. Regularly shop around for quotes to ensure you’re getting the best deal, even if it means switching insurers.
Your Car’s Color Doesn’t Affect Premiums
Contrary to popular belief, your car’s color doesn’t impact your insurance premiums. Insurers consider factors like the make, model, age, and safety features of your vehicle. While a red car might attract more attention on the road, it won’t directly lead to higher insurance costs.
The Repair Shop Is Your Choice
In the event of an accident, your insurer might suggest a preferred repair shop. However, you have the right to choose where your vehicle gets repaired. Insurers have agreements with certain shops, but you can select a repair facility that you trust. Just make sure to inform your insurer so they can process the claim accordingly.
Comprehensive Coverage for More than Crashes
Comprehensive coverage isn’t just for accidents. It also protects your vehicle from non-collision events like theft, vandalism, and natural disasters. While comprehensive coverage might increase your premium, it provides valuable protection in various scenarios beyond traditional accidents.
Your Premium Can Increase After an Accident
Even if an accident isn’t your fault, your insurance premium might still increase. Insurers consider various factors, including the severity of the accident and your driving history. Some insurers offer accident forgiveness programs that prevent your rates from rising after your first at-fault accident.
Discounts Aren’t Always Advertised
While insurers promote various discounts, they might not inform you of all the available options. Ask your insurer about potential discounts, like safe driver, good student, or multi-policy discounts. Bundle your auto insurance with other policies, like home insurance, for substantial savings.
