Tips on Auto Insurance

You are a statistic: To an insurer, you are not a person; you are a set of risks. An automobile (and any other type of) insurer bases your insurance premium on your 'risk factors'. These include who you are, what you own, how you drive, your occupation, your credit rating, and other factors.

Insurers differ. Even though insurance is regulated by the laws of the area in which you reside, what seems to be the same product can actually be priced differently from company to company. Do some comparison shopping, and you may save some money.

Do not just look at price. A low price on your insurance is not necessarily a bargain if your insurer takes a long time to service your claim, or is unable or unwilling to settle at all.

Go beyond the basics. Especially these days, you need more than just basic coverage (collision, comprehensive and liability), but also rental, towing, medical reimbursement, just to name a few.

Demand discounts. Insurance companies are willing and able to provide discounts which essentially reward behaviors that reduce the risk you present. However, many people do not bother to ask about them. Do so!

When you file a claim, your insurance company is not your friend (or good neighbor, or on your side, or whatever). Your idea of what constitutes fair compensation might not match that of your insurer. You will need to document and prove your losses in order to get fair compensation.

Be proactive. Keep your automobile insurance policy up to date, regularly reviewing your coverage vs. your needs, and then reread it before you file a claim so that there are no surprises.

This article is approved for informational purposes only and is not intended to take the place of competent local legal counsel.

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