When buying car insurance, don't just focus on the big pictures of rates, deductibles, and how to make claims. Some "small print" issues that are equally important. Here are three examples of small print issues to scrutinize before buying auto insurance.
Application of Accident Forgiveness
Auto insurance risks are based on statistical risks of drivers, which mean drivers with accidents in their driving histories pay higher premiums than those with clean records. However, many insurers have accident forgiveness policies, which mean they don't hike your insurance premiums if you incur an accident.
Insurers apply accident forgiveness in different ways. For example, the insurer:
Therefore, scrutinize your policy to understand how your insurer applies accident forgiveness. The knowledge may help you decide whether to file a claim after an accident, especially if the claim is moderate or small.
Loaning Your Car to Others
As a rule, car insurance follows the car. This means that your insurer should pay for the damage when another person drives and damages your car. However, this is a general rule, and your insurance policy's small print may have more to say on the issue.
For example, in some states, your insurer might pay for damages caused by an excluded driver, as long as you did not permit the driver to use your car. In some policies, if a family friend drives your car without your permission, then their insurer pays for the damages. It all depends on the wording of your policy and your state's insurance laws.
How Policy Cancellations Are Handled
Lastly, you should also understand how your insurer handles policy cancellation. Canceling a policy doesn't always mean that you are dissatisfied with your insurer. You may have to cancel your insurance abruptly even if your insurance carrier is the best in your state. For example, you may be taking up a job offer overseas or selling your car.
Therefore, you need to know:
For more information, talk to insurance agencies like Collier G William Agency.
Share29 April 2016
When I got married, I knew that there were a few things that I needed to learn about the way the world worked. For starters, I had to figure out how insurance worked since I wanted to make the most of my life without worrying about money. I started focusing on the policies that I had in place and gradually moved towards acquiring new life insurance and the like. Having each of these coverages helped give both me and my spouse peace of mind. We both knew if something happened to me that the other would be okay. Check out this blog to learn more about insurance needs.