Top 5 Car Insurance Tips Every Driver Should Know
Drivers need to know the myths from the facts about auto insurance so they can understand their coverage and make an informed decision. Auto insurance is a complex subject, although it is necessary. Many drivers tend to be misinformed through word of mouth or misleading websites. Here are some car insurance tips drivers need to know.5 Car Insurance Tips
Tip No. 1: Many insurance companies only charge for transfer violations, so parking tickets do not affect your insurance. Understand how tickets increase your car insurance rates. Likewise, there are many other types of tickets that don’t lead to increased rates, and they vary from company to company.
Tip No. 2: Many people have the common misconception that aftermarket stereo equipment and parts added to a vehicle are covered by their insurance policy. Car insurance does not cover everything in or on the car. While coverage varies from person to person and company to company, in most cases, the coverage for the contents of a car is very low. Car insurance policies are mainly used to cover the impact of damage to the car and medical bills due to accidents. So make sure your home insurance covers this extra. If you have aftermarket equipment and parts installed in your vehicle, make sure you keep receipts for the same.
Tip No. 3: No-fault insurance is a gray area. Understand your no-fault insurance: It doesn’t mean that in the event of an accident, no one is at fault. Something always goes wrong in a crash; it’s just that, regardless of who is at fault, the company pays claims for its respective customers. The wrong party will naturally see the rate increase.
Tip No. 4: This is especially important to understand and note if you frequently borrow cars from friends. Insurance doesn’t cover every car you borrow-If you happen to be driving a borrowed car and it goes wrong in a collision then the car owner will see the increase in his car insurance rates, not the borrower.
Tip No. 5: Drivers must carry more than the legal minimum to avoid additional costs in the event of a collision. Understand the legal minimums dictated by your state: Each state has established statutory liability coverage and every driver needs to know this. This legal mandate exists to ensure that no one drives a vehicle without liability coverage for other drivers. However, it should also be realized that this is not an absolute number and does not cover collisions and the full range of coverage.
These tips are important to understand to avoid penalties in the later stages.