In the majority of states, car insurance is obligatory. Currently, New Hampshire is the only state that allows you to drive without insurance, providing you can show you have the financial means to deal with any issue that arises thanks to your driving
Car insurance can cover the damage to your own car. But, the primary role of this insurance is to ensure funds are available for injuries to third parties. If you don’t have insurance you will be personally liable. That means bills of tens of thousands of dollars, or sometimes more. The exact value will depend on the nature of the injuries.
In effect car insurance is a cornered market. If you have a car you need insurance. The only thing that stops the insurance company from demanding obscene sums of money is the competition. Of course, this means insurance companies need to keep your business by whatever means they can, that’s why there are a number of things car insurance companies don’t want you to know.
Once you realize what these are you’ll be able to save money on your car insurance year after year.
Extras Increase Costs
It’s nice to buy the top of the range vehicle, it comes with all the extras you can think of. However, the greater the number of extras the higher the value of the vehicle. This means an increased risk of theft and a bigger bill if the car is written off. To compensate, the car insurance company will increase your premium.
Your Location Makes A Difference
You probably can’t do much about where you live but your insurance will be affected by where you live. The more dense the traffic or the higher the rate of car theft in your area, the higher your premium will be.
Finance Increases Car Insurance
One thing that most people don’t realize is that having car finance will often increase the cost of your insurance. This is usually because your loan provider wants you to carry extra coverage to ensure they get their money back if something happens to your vehicle.
Check before you borrow, it can make a big difference to your premium.
All Claims Are Noted
All accidents are logged onto central databases that all insurers can access. That means you can’t escape previous accidents simply by changing insurers. The more accidents you’ve been involved in the higher your premium will be.
But, you may not appreciate that even asking your insurance company or agent about making a claim will be filed on your report. That happens even if you don’t follow up with an actual claim and will increase the cost of your insurance.
Traffic violations are also recorded and can cause your premium to rise.
Staying With the Same Insurer Doesn’t Mean You’ll Save Money On Your Car Insurance
Many people stay with the same insurer year after year. It’s easy to see why. The company will send you a renewal and you don’t have to do anything, it’s easy. Alongside this, they will send you a loyalty bonus that makes you feel like you’re saving money.
However, the truth is that the premium is inflated to make it look like they are saving you money. Most drivers will find they can save money by shopping around and using a different insurer. There is no need to stay loyal to one.
Monitoring Can Cost extra
Perhaps one of the biggest things car insurance companies don’t want you to know is that monitoring doesn’t automatically save you money.
Monitoring means adding a tracker to your vehicle that records your driving, including mileage, type of driving, how hard you use the brakes, etc. This information can be used to reduce your car insurance premium. However, it can also be used to increase it.
The insurance company simply needs to conclude that your driving increases your risk, even if you are a perfect driver.
Attorneys Can Help
If you do have to deal with an insurance company regarding a claim you’ll want to ensure you get a fair deal. One of the secrets the insurance adjuster won’t share with you is that a good attorney will help you to get the maximum payout from the insurance company without having to wait for a court date. They will know what is a reasonable settlement and can guide you accordingly.
In short, the biggest secrets the insurance adjuster won’t share with you revolve around you getting more money from them. That’s money you’re entitled to.
The good news is that you now know their secrets and can save money on your car insurance every year.