Choosing the right auto insurance can be a difficult process when you don’t have much information. As the consumer, your main concern might be how much your monthly rate will be and risk neglecting other important areas.
Many things determine these rates and you might not even be aware of some. Things like your credit score and car model do matter. Here are some things that your insurance company might not want you to know.
Credit Score Matters
While your credit score might come to mind if you are trying to rent an apartment or apply for a loan, it might not cross your mind when you are getting car insurance.
Studies have shown that people with lower credit scores typically paid more than a person with average or good credit. The logic behind this is that insurance coverage is based on your risk factor, and a person with lower credit is assumed to be a higher risk.
Your Car’s Model Can Increase Your Insurance
You might know that whether your car is paid off or under a loan can significantly affect your insurance. One reason is that cars under lien are required to have full coverage insurance, while fully purchased vehicles can get liability coverage.
The type of vehicle you own also matters, as the more expensive it is, the higher your insurance premium will be. Other aspects that will be considered are the safety rating, extra features, and more.
Ways You Can Reduce Your Insurance Costs
Because auto insurance companies take several things into account when determining your rates, you can improve in certain areas to reduce your costs. Here are some of the determining factors that you can address and help lower your rates:
- Credit Score -Since having a good credit score can give you a better insurance rate you can start cleaning up your credit by paying bills by their due date. This can help you achieve an excellent payment history on your credit file and prevent derogatory remarks.
- Drive Safely -Auto insurance companies do consider your driving record; therefore, keep it as clean as possible. Make sure you aren’t accumulating a lot of speeding tickets and avoid accidents, as these can result in you paying a higher rate.
- Increase Your Deductible -If you want to reduce your monthly costs, you can opt for a higher deductible. This can be a great solution as long as you don’t have collisions often.
You Can Appeal a Denied Claim
When your insurance company denies your claim, don’t think that the decision is written in stone. You can appeal it and win if you have an experienced lawyer fighting for you.
When choosing an attorney, make sure they have many wins under their belt and years of experience with cases such as yours. Depending on if your case is a personal injury claim, you might be able to retain a lawyer without any upfront costs as well.
Know Your Policy Inside-out
While having car insurance is something that no one can avoid, you can do your part to ensure that you have the best coverage possible.
It is important to know your initial costs, but you want to know where you will stand in case of an accident as well. The last thing you want is to end up sustaining a serious injury only to have your insurance company deny your claim.
Make sure you are well aware of all fees and services associated with your policy, so you can stay in the know when dealing with your auto insurance company.
