Now more than ever, with the increasing costs associated with car accidents, having car insurance has become a necessity. Having insurance is such a convenience when you get involved in road crashes. It frees you from having to make those out of the pocket expenses for any repairs that may arise from the accident.
You need to understand the terms of your policy so that you will know how to deal with your provider in case they try to shortchange you. With that in mind, here are some facts about car insurance that you need to know:
- Car insurance does not provide coverage for lost personal items due to vehicle theft. If you are fond of bringing expensive items in your car such as laptops and GPS devices, you may not be able to get coverage for them in case of vehicle theft. If you want coverage for them, you should include a rider on your policy for covering them.
- Occupation can affect your auto insurance rates.Depending on your occupation, it is possible to get discounted rates on your insurance premium. For instance, an engineer is likely to get discounts because they are considered less risky.
- The kind of car you drive can affect your car insurance rate
Most insurance companies use insurance accident statistics compiled by the Highway Loss Data Institute when setting prices on insurance. So the more expensive your car is, the higher will be your insurance rate as the insurance provider will have to pay more. If your car is the type that is less likely to be stolen, you get lower insurance rates as the insurer will pay less when you get involved in an accident.
- When switching auto insurance policy, make sure to cancel your previous policy. When you fail to do so, it will be reflected in your credit report as canceled due to non-payment.
- Auto insurance is tax deductible when used for business. Simply, indicate the amount of time your car is used solely for your business. Let us say that you used your car 30% of the time, then 30% of your auto insurance is deductible. Your best option is the flat per-mile reimbursement instead.
- Being a safe driver can contribute to lower premiums. Most insurance companies will consider things like safety features, safe driving record, anti-theft devices, and others. So make sure that you are fully rewarded for being a safe driver.