The Importance of Regularly Shopping for Auto Insurance
Understanding Your Policy: Before looking for a new auto insurance provider, you should thoroughly review your current policy, considering any changes in the previous year that might necessitate an update to your coverage. This involves a comprehensive review of your current coverage, ensuring it aligns with your needs.
Annual Comparison and Evaluation: The ever-changing landscape of auto insurance means that rates can fluctuate yearly, making an annual comparison important. Changing personal circumstances, state and local laws, and other factors like accidents or violations can impact your premiums. An annual review is a simple way to keep your costs lower than average and adapt to changes in your circumstances.
Facets Influencing Your Premiums: Various factors, including the type of vehicle, your driving and credit history, your age, gender, and potential discounts, can impact your auto insurance rates. Knowing these factors is key to finding the best policy at a reasonable rate.
Switching Insurance Providers: Transferring to a new insurance provider involves the insurer looking at your credit history, so expect a temporary impact on your credit score from inquiries. Once you’ve identified a suitable new provider, obtain coverage and cancel your previous policy.
Debunking Myths Surrounding Car Insurance
Color doesn’t affect cost: A common myth is that car color influences insurance costs, often emphasizing red cars being costly. The reality is that insurance companies use factors like age, driving and credit history, and the vehicle’s make, model, engine size, and body type to calculate premiums, not color.
Coverage isn’t always automatic for new cars: While certain insurance providers offer automatic coverage, this is not always true. Always the agreement and required coverage with your provider.
Minimum coverage isn’t always enough: Minimalistic, legally required coverage might seem appealing, but it might fail to protect from potential damages to the car. Therefore, considering a comprehensive policy is a solid investment.
Men may not necessarily pay higher premiums: Although men, especially those under 25, are often considered riskier, multiple factors sway the scale regarding premiums. A responsible driver, irrespective of age and gender, could qualify for lower premiums.
Credit rating does matter: Contrary to popular belief, credit ratings can impact insurance rates in most states, with poor credit leading to higher premiums.
Accidents should be reported: If you encounter an accident, it’s best to report it, because if another driver reports the accident, your insurer can still raise your premiums. Unreported accidents can also make you appear as a dishonest driver.
Insurance need not automatically cover outstanding loans: Except for GAP coverage, most insurance policies cover the car’s market value at the time of the accident, regardless of the outstanding loan amount. Therefore, depending on the size of the loan and the car’s value, the insurance payout may not be enough to cover the loan’s balance.
Comprehensive coverage of my vehicle will cover its full cost in case of total loss or theft. Actually, comprehensive coverage will only reimburse you your car’s current value at the time of loss or theft. Due to the depreciation of car value over time, this reimbursement might not be enough to pay off a financed vehicle, leaving you in debt for a car you no longer own.
Gap insurance is an unnecessary, additional cost. Not quite; gap insurance, also known as guaranteed auto protection insurance, is essential for those who lease or finance their car. It covers the difference between the remaining amount you owe on your vehicle and its value at the time of total loss or theft, saving you from making payments for a car you can no longer use.
Gap insurance is only beneficial for new car owners. While Gap insurance is typically associated with new vehicles, it can also benefit used car owners. For instance, if you have purchased a year-old used car, you might still find value in Gap insurance.
Gap insurance covers all vehicle costs, including repossession and repair costs. It’s important to recognize the limitations of Gap insurance. It does not cover repossession costs, aesthetic touch-ups from wear and tear or accidents, and roadside assistance or towing. It strictly covers the difference between your car’s value at the time of loss and the remaining amount you owe on it.
Honest Collision Repair Near You
We are proud to have been serving the Malvern and Aston, Pennsylvania, area for nearly two decades. Contact Badell’s Collision for an estimate for auto body repair, glass repair, auto painting and hail damage.