Whether you are new to car insurance or a long-time buyer, there are many things you may not be aware of. In many cases, this ignorance can cost you money. The following are three things you should know about car insurance.
Your insurance follows your car
What this means is that, regardless of the driver, your insurance is in effect. If you lend your car to a friend, your insurance will remain in place. There is one exception to this. Your policy will not cover anyone who is living with you. This is true regardless of the relationship you have to the individual. So this applies to relatives and friends and it also applies to any roommates you may have. The lesson here is that if you want someone you live with to have access to your vehicle, then you need to have them listed on your policy. Yes, it will add to the price of your insurance, but you will have insurance coverage in the case of an accident.
Your may have coverage you're not aware of
Insurance companies often have additional coverage in a policy that you may not know about unless you have read your entire policy. One example is coverage for a rental car. You may already have this coverage, so there is no need to buy it from a rental car company. If you don't have it, you may be surprised to find that it is cheaper than what you will pay at a rental agency. The same is true with roadside assistance. If you have this from another source, you may have overlapping coverage. Take a look at your policy and call your agent with any questions. You may already be paying for roadside assistance.
Insurance companies verify everything
You may be thinking that you can save some money on your policy by exaggerating a bit on your application, but insurance companies depend upon the accuracy of your information to determine the premiums that will make them a profit. For this reason, they will verify your information. For example, they will make sure that the distance of your commute from home to work is accurate. Another thing they will verify is any traffic tickets you forgot to write down. If by chance, there is something you neglected to put on your application, this may impact a future claim.
Always be honest about everything on your application, and when you have the time, you should read through your current policy. Ask your agent any questions you may have. You may be surprised at the extent of your coverage. Contact a company like AALL Insurance for more information.
Share30 September 2016
