Category >> Auto >> Auto Insurance Facts part one
Auto Insurance Facts part one

Since the first of April, 2008 car insurance companies have been allowed to set their own interest rates. This basically means that now you can expect different premium quotes for the same level of coverage. It makes things that much more competitive and better for you. The quotes have to be first approved by the Commissioner of Insurance before the insurance agent can present them to you. 

The change has also meant that you may become eligible for additional coverage at the same rate and certain waived deductibles. Check if you are eligible for replacement cost coverage under which the insurance company will pay you replacement cost of your vehicle if it is a model that they cover and is within the limit of miles traveled as per their policy. A loan / lease gap coverage can be a handy coverage deal in which the insurance company will cover the costs that are over and above the actual value of the vehicle. This usually happens during depreciation. A little additional premium will ensure that your car is serviced with OEM parts and not “after market” ones in case it meets with an accident. You can buy yourself safety if you move regularly in rented vehicles; a little extra premium will ensure that in case the vehicle meets with an accident when you are driving it, you are not forced to pay for the cost of repairs or indeed the vehicle. 

There is every chance that with increased competition, your individual rates will go down though factors like risks that you’re exposed to, your driving record, your area, etc will also come into the picture. In case you feel that your rates have actually gone up instead of having come down, then check if it’s actually true. Maybe your coverage has also increased proportionately. Or could it be that your driving record for the past year has not been too good and you’re now classified as a high-risk driver. Once you have ascertained that your premium has increased you can look around for a better coverage for the same premium. The best way to keep the premium down is to ensure that you do not incur traffic violations or get involved in accidents.

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