If you recently purchased a vehicle, you’re probably shopping around for the best insurance policy for your needs. Wondering what type of insurance coverage you should get? Before deciding, consider the following facts regarding your new car policy.
- Your Belongings May Not Covered
When searching for auto insurance, you may be looking into whether or not a company will cover repair or medical expenses. Chances are they will. However, will they cover the cost of valuables in your vehicle damaged during accident? Your belongings may not be covered.
- Luxury is Expensive
This statement is true for luxury vehicle owners. People who drive luxury cars have to pay more for auto insurance than regular car owners as it’s way more expensive to repair luxury vehicles.
- It May be Cheaper to Pay a Lump Sum
If you are looking for insurance rates, a monthly payment for savings may be your way to go. However, there is a chance an insurance policy is cheaper if you pay for 6 or 12 months upfront. It’s better to discuss this option with your insurance agent if you’re unsure which option to choose.
- Your Credit Score May Impact Your Premium
Did you know your credit score may impact how much you pay for your auto insurance? In some states, you can legally use your credit information to help determine your premiums. If you have a poor credit score, it will result in higher premiums. Conversely, you have to pay lower rates if you have an excellent credit score.
- Insurance is Required in Most States
If caught without insurance, you could face some serious penalties. In most states, driving your vehicle without auto insurance is illegal. Some consequences you may face include your license being suspended, being heavily fined, or even facing jail time. If you can’t afford insurance, programs are usually available to help you get coverage.
- The Meaning of “No Fault” Insurance
What is “No Fault” insurance? You might misunderstand it; you’re protected from being held accountable if an accident happens and you are at fault. Yet this is far from the case. No-fault insurance means that if you are not at fault in an accident, your insurer will handle your case. So you don’t have to go after your compensation personally.
- Accidents and DUIs Stay on Your Record for up to 10 Years
If you have been in an accident or received a DUI, it will likely stay on your record for up to 10 years. Resultantly, your rates could increase significantly during this period. Ensure to shop around for quotes to find the best deal possible.
- Discounts are Available
If you want to save money on auto insurance, you may be eligible for a few discounts. Some insurers offer discounts for having a good driving record or owning a home.
- You May Need More than One Policy
You will need more than one insurance policy if you own multiple vehicles. Discuss with your agent the best way to insure all your vehicles.
- You May Require Special Coverage for Classic Cars
You may need special coverage if you own a classic car. Discuss options with your insurance agent to get the best coverage for your classic car.