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Car insurance is one of those policies that most drivers have, mainly because it’s the law in most areas. However, even though many drivers have car insurance, not everyone knows all the details about how these policies work. Unfortunately, if you don’t understand how the policy works, you won’t be getting the most out of your premiums. Understanding your policy is just as important as finding the best car insurance.
Whether you’re the proud driver of a new car or you’re driving a pre-owned vehicle, you should know these five auto insurance facts.
How Premiums Are Determined
Several factors influence and determine what your insurance premiums will be, which is the case with most insurance policies. But when it comes to car cover, the particular factors are your age, the vehicles’ value, your driving history, and how secure your car is.
Knowing which factors influence your policy is essential when finding ways to reduce your premiums. For example, knowing that your insurance premiums are higher because your vehicle is parked outside allows you to park your car in a garage instead. This will automatically lower your premiums.
Collision VS Comprehensive Cover
Collision cover only pays for the repairs to your vehicle, which can be pricey, but you are not covered when it comes to everything else. Although this option might be cheaper, you won’t be covered with the costs of damages to other vehicles or property when involved in an accident. Comprehensive insurance covers every aspect of your car.
It Is Possible To Lower Premium Costs
One of the easiest ways to keep your premiums low is to keep an accident-free record. Try your best to avoid changing insurance companies often, as this can also flag you as an inadequate customer.
However, there are other great ways to reduce premium costs. These budget-friendly solutions include increasing your deductible, shopping around, and others.
Your insurance Won’t Cover Other Drivers Using Your Vehicle
Assuming that anyone can drive your vehicle simply because they have a driver’s license is a massive mistake that far too many drivers make. Unfortunately, other drivers are not covered by your insurance policy to drive your vehicle. So, if another driver is using your vehicle when involved in an accident, the insurer will not payout.
If you do need to lend your vehicle out to particular drivers, the best solution is to add them to your insurance policy.
Not All Insurers Are The Same
No two policies are the same, which is valid for insurance companies; every company will include varying terms and conditions within their guidelines.
So, instead of assuming all car insurance policies work the same, you should always read through terms and conditions thoroughly before purchasing a policy.
Knowing the facts about how your policy works is vital when it comes to making a claim; if you don’t know what you are covered for, you might not receive the payout you deserve. Moreover, you will also need to understand how your policy works to ensure you can keep your premiums low.
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