Car insurance is an expensive outlay and getting a good deal is becoming harder and harder, particularly when there are some things that your provider isn’t particularly upfront about. Here are five things that your insurer won’t tell you.
The actual model of the car you own will affect your premium. Insurance providers use a rating system which was devised by the Insurance Services Office whereby each car make and model has an allocated number from 1 to 27 – the number is calculated using an algorithm which takes into account the cost of the car, safety and theft data. The higher the number the higher your premium will be.
Most insurers will check your credit report when you apply for auto insurance. If your credit rating is good then you will pay less to insure your car than someone with a less than perfect credit score. Research has shown that there is a direct link between your credit score and the possibility that you will file a claim. Insurance companies also know that if you pay your bills on time and have held the same accounts for a long time that you are more stable than someone who pays late and frequently opens and closes credit accounts.
If you pay in instalments you will pay more. Fractional premium fees are charged when you pay for your annual policy in instalments. You can make payments monthly, quarterly or every six months. Companies will charge you a fee for breaking up the payments and the more that they are broken up, the more you will pay. However, it always pays to ask how much these fees are because if they are very small it may be worth your while to choose the instalment option if you are finding it difficult to find the full amount.
If you want a discount you’re going to have to ask for it. Insurance agents work on commission so the more you pay the more they get! Make sure you find out all the discounts that are available to you. Do your homework before speaking with a provider and make sure you know exactly what you are entitled to.
When your auto insurance comes up for renewal don’t assume that your existing provider will automatically offer you the best deal. It pays to shop around as many companies offer their best deals to new customers and then push the premiums up in subsequent years. So if you’ve received a cracking deal with a new insurer the chances are that your premium will be considerably higher next year regardless of whether you’ve got a perfect driving record or not!