Everything You Need to Know About Car Insurance
Updated: Nov. 27, 2019
Know what you’re getting yourself into. Read on for everything you need to know about car insurance.
If you don’t pay attention, shopping for car insurance can easily turn into a headache. You’re buying a new car? Your teenager is now driving your car? You change jobs or you retire? All these things can influence the cost of your premium. Here’s everything you need to know to make a good deal on your car insurance.
How Does Your Insurance Company Calculate Your Premium?
Several factors need to be considered to avoid bad surprises while calculating your car insurance premium. Here are the most important ones:
• The car itself: the model, the year, the repair costs and the equipment or accessories chosen are all influencing the cost of your car insurance premium.
• How you use your car: the cost of your premium will not be the same depending on whether you make an occasional use or a daily use of your car. If you use your vehicle for work, inform your insurance company.
• Where you live: if you live in a city and you park your car in the street every night, your premium will not be the same as if you live in the countryside or park your car in a garage.
• Who is driving the car: the age, sex and experience of the people who are driving your car have an impact on the price of your premium.
• Protections and franchise chosen in your coverage: the price of your auto insurance is calculated according to the options that you choose in your coverage. Make sure you understand your coverage.
• Driving Record: your insurer will get access to your driver record to get the list of your previous accidents and claims.
Your insurance company might also ask to access your credit report. It is the best way for them to calculate the risk of insuring you. You can refuse to give them that access, but you should know that it is possibly a good way to save money on your premium.
Everything You Need to Know Before Purchasing Auto Insurance
You’ve bought a new car and you’re surprised to see your insurance premium increase? This is perhaps due to the repair costs of the model you have chosen. It is therefore important to check those things before you buy a new car and purchase new auto insurance. Here are a few tips to reduce the cost of your premium.
• Be a great driver: make sure you respect the Highway Safety Code and to be a great driver.
• Be well informed: before you buy a new car, learn about the repair costs and the average insurance cost for this model. Also look for the frequency of reported theft.
• Combine your auto and your home insurance: to save on your premium, combine your auto and your home insurance. Also, make sure all of your vehicles are insured with the same company. By doing so, you’ll benefit on all these coverages.
• Choose wisely: subscribe to good guarantees and choose the right franchise deductible for your financial capacity. The franchise deductible corresponds to the amount that you agree to pay in the event of a claim.
• Install an antitheft alarm system: such a system will allow you to save on your car insurance premium. Make sure that your insurance company approves your device to avoid paying unnecessary installation costs.
• Be honest: lying on your insurance policy or during a claim could result in denial of coverage. To omit a particular condition or lie about an event is not a good way to save money.
With all these keys in your hands, you’re now ready to roll toward your next adventure! Be safe!
