If you or a family member has recently purchased a vehicle, chances are you’re shopping around for an insurance policy that best fits your needs. You’re probably looking at the type of coverage you’ll get. There are a few things you may not have considered regarding your new car policy.
10 Facts About Car Insurance
Perhaps you already know some of these facts, but a review never hurts. Here are 10 things you should know about car insurance:
1. Your Belongings May Not be Covered
When searching for insurance, you may be looking into whether or not companies will cover medical expenses or repair costs. Chances are they will, but will they cover the cost of valuables in your vehicle? While you may not be worried about this factor, it’s important to understand every variable as you decide.
2. It May be Cheaper to Pay a Lump Sum
If you’re looking at insurance rates, it may appear as if a monthly payment is the way to go in terms of savings. However, there’s a chance an insurance policy you’re looking at is cheaper if you pay for six or 12 months up front! Discuss this option with your insurance agent if you’re unsure about which option is best for you.
3. Luxury is Expensive
While this statement seems obvious, it’s especially true for luxury vehicle owners. In general, people who drive luxury cars tend to pay more for insurance than regular car owners. This is because it’s way more expensive to repair high-end vehicles.
4. The Meaning of “No-Fault” Insurance
When you think of no-fault insurance, you’ll likely assume it means that, if an accident happens and you were at fault, you’re protected from being held accountable. Yet this is far from the case! No-fault insurance simply means that, if you are not at fault in an accident, your insurer will handle the case so that you don’t have to personally go after your own compensation.
5. Your Credit Score May Impact Your Premium
Did you know that your credit score may impact how much you pay for car insurance? In some states, insurers can legally use your credit information to help determine your premiums. If you have a poor credit score, this could result in higher premiums. Conversely, if you have an excellent credit score, you may be rewarded with lower rates.
6. DUI’s and Accidents Stay On Your Record for up to 10 Years
If you’ve been in an accident or received a DUI, these events will likely stay on your record for up to 10 years! As a result, your rates could increase significantly during this time. Make sure to shop around for quotes so that you can find the best deal possible.
7. Insurance is Required in Most States
If you’re caught driving without insurance, you could face some serious penalties. In most states, it’s illegal to drive without car insurance. Some of the consequences you may face include having your license suspended, being fined, or even facing jail time. If you can’t afford insurance, there are usually programs available that can help you get coverage.
8. You May be Required to Have More Than One Policy
If you own multiple vehicles, chances are you’ll need more than one insurance policy. For example, if you have a motorcycle and a car, you’ll likely need two separate policies to cover each vehicle. Make sure to speak with your agent about the best way to insure all of your vehicles.
9. Discounts are Available
If you’re looking to save money on your car insurance, there are a few discounts you may be eligible for. Some insurers offer discounts for things like having a good driving record, being a student, or owning a home. Ask your agent if you’re eligible for any discounts that could help lower your rates.
10. You May Need Special Coverage for Classic Cars
If you own a classic car, you may need special coverage to insure it. This is because regular car insurance policies typically don’t cover the full value of classic cars. Make sure to discuss your options with your agent to get the best coverage possible for your classic car.
Find the Coverage You Need
Whether you’re a new or seasoned driver, it’s important to understand the ins and outs of car insurance. These 10 facts about car insurance in California should help you become more informed about your coverage.
If you have any questions, be sure to speak with your agent. And if you’re looking for an car insurer that offers great rates and excellent customer service, be sure to check out Pronto Insurance!
