Car insurance is a type of policy that most drivers have. But even so, most policyholders are not entirely sure how this policy works, what it covers, and what it doesn’t. And while this is partially due to assumption, not knowing the facts about your policy can land you in financial trouble when a baseless claim is rejected.
So, we’ve listed the fundamental car insurance facts that you should know.
Auto Insurance Policies Differ
The types of auto insurance policies include liability insurance, collision insurance, comprehensive cover, medical benefits cover, and personal injury protection insurance.
Liability insurance will provide cover for damages done to other parties or their property. Collision cover pays out for car accidents, while the comprehensive cover offers the most financial protection for the policyholder. Medical cover and personal injury protection are additional plans to add to your policy.
So, when hunting for the cheapest car insurance in Connecticut or anywhere else for that matter, be sure to determine the type of policy you need first.
Where You Park Affects Your Policy
Several key factors determine your premiums. These factors include your age, gender, accident history, claim history, and where you park your vehicle.
If you are parking your car overnight on the curb, your insurer will increase your premiums because your car is exposed to damage and theft. As a result, it’s important to park in securely covered spaces.
You Can Ask For Discounts
Even though your insurer provides you with a seemingly decided quote, you can still inquire about any available discounts. Sometimes, installing a tracker in your vehicle allows policyholders a discount on their premiums and added services like roadside assistance.
In other cases, pensioners might also be eligible for discounts. Although, more often than not, the insurer will keep mum on available discounts. So, it’s important to ask.
Claiming Too Often Is A Mistake
You purchased a policy to assist with the financial impacts of unpredictable events as a driver, so it makes sense to claim when these costs arise. However, it’s essential to only claim from your policy when you need to because each time you claim, your premiums will increase. And this can be pretty devastating if a claim is rejected.
Only Insured Drivers Are Covered
A common mistake new drivers make is lending their vehicles out to friends and family without adding them to their insurance policy.
There are tons of legal liabilities that can stem from lending your car out, and these swing into action at the worst possible moment when another driver is involved in an accident with your vehicle. Your insurance will refuse to pay out for another driver’s negligence and your own.
You Really Can Lower Your Premiums
Once again, it makes sense why so many drivers assume their premiums are unchangeable. Regardless, you can effectively lower your premiums by comparing deals with insurance companies, keeping your car in good condition, avoiding unnecessary claims, practicing safe driving habits, and increasing your voluntary excess.
Knowing the facts about your car insurance policy enables you to get the most value for money from your premiums.