4 Little Known Facts About Car Insurance
Most of us think very little about our car insurance other than finding the cheapest rate available from a company we deem to be trustworthy enough for our business. But there are many things to consider, some of them going largely unnoticed by the general public.
1. Your personal credit affects insurance cost.
If you have struggled with meeting your financial obligations and it has affected your credit score,
it may also in turn affect how much you pay for car insurance. Fair or not, a person’s credit, along with other factors such as age and driving record, can play a role in the insurance company’s risk analysis and determining the appropriate rate for you. This gives you yet another good reason to monitor your credit report to know where you stand and to fix any errors if they exist.
2. You pay more or less depending on what you do for a living.
Does your career and education level pose an insurance risk? That’s what the insurance industry thinks, since what you do for a living can impact your insurance rate. For example, engineers, scientists, teachers, and pilots are deemed to be the type of people who are a lower insurance risk. But it’s not as simple as how many accidents they get in. A person in a higher paying career may also be less apt to file a claim in a fender bender, preferring to simply pay out of pocket.
3. Save money by paying your premium all at once.
While it’s not like saving on accrued interest in a loan, paying your insurance premium upfront will be cheaper nonetheless. However, there are administrative fees that apply when you pay your insurance in installments. Choosing to set up automatic payment from your checking or a credit card may also play a role in your fees. If paying upfront is financially viable, it not only saves you money, but time throughout the year, since you don’t have to worry about it. Plus, there’s no chance you will be hit with a late fee.
4. Your insurance company will cover lost value in your vehicle after an accident.
It’s rarely pointed out by your insurance company, but if you are in an accident and it’s not your fault, you can
submit a claim for lost value that isn’t realized until a later sale date. Most often referred to as a diminished value claim, you may be leaving thousands of dollars unclaimed money if you don’t pursue it. It’s best to hire a professional vehicle appraisal service to determine the lost value, which can be submitted as a report to your insurance company. Find out more about what your state laws say about diminished value.
