AUTO INSURANCE ARTICLE
Auto Insurance 101
By: coppeneurThere are top things you need to know about auto insurance. And this article has you in mind, someone who doesn’t want technical mumbo-jumbo, or even insurance-speak to begin with. So here you go, as simple as we can present it to you:
1. You're a set of risks.
Don’t expect your auto insurance provider to look at you as a person first. To a carrier, you're a set of risks, and a person second. And they come up with a decision on your premium costs according to your "risk factors," which does not only mean your driving skill but may include non-driving related characteristics relating to you, like where you live, or what job you have, or whether you have straight A’s in university.
2. Insurance companies are not the same.
If you think that there is a standard for all insurance companies, yes they do have, as regulated by law. But when it comes to the products they offer, as with anything else you buy, they vary from one product to another, and from one auto insurance company to another. That is why if you window shop for that pair of shoes or that powerful DSLR camera before taking out your cash for one, it’s the same rule for choosing and buying your auto insurance.
3. The price does not say it all.
You might jump to a conclusion that a cheap auto insurance is the best for you. Well it could be. But cheap relative to its coverage, not just cheap in absolute terms. Say, you got a really floor-priced insurance but it takes you ages to get your claims, then it is not cheap at all. Or you got a bargain insurance, but the company who’s issuing it might just be under water soon, that’s not cheap at all!
4. Don’t settle for the minimum.
If you comply with state-required minimums, then it should be enough. Wrong! While most states require only a minimum of auto-insurance liability coverage, they usually cover damages for third parties, and not your own. And how about if you happen to be in the middle of nowhere, and your car got stuck, we doubt you minimum coverage will be of help. So a roadside assistance coverage could have been handy don’t you think?
5. Discounts are auto insurance biggest secret.
Discounts are usually given for good driving behaviour, or for company loyalty. According to auto insurance industry surveys, Americans waste some $300 billion a year because they forget to ask for discounts. They don’t offer it to you in a silver platter, but they are there, just for your asking.
6. The burden of proof is on you.
Come claiming time, don’t expect your insurer to have the same idea of fair compensation as you do. Their obligation is to restore you financially, and yet cut the least loss for their company. So the burden of proof is in your hands, prove your losses so you get what you need.