We Recommend the Policies that Are Best for Us, Not for You
If you work with a full service agency to compare auto insurance policies, they often will try to steer you toward one specific policy over another one. While many agents are honest people who really do have every intention of helping you get the cheapest auto insurance you can with the coverage you need, some will deliberately steer you toward the coverage that gets them the biggest commissions. If you feel like your agent is pushing you toward a specific policy, feel free to ask about commissions and make sure the policy really is in your best interests.
Bad Credit Can Cost You Big Money
When shopping for general car insurance, the last thing you’re likely to think about is your credit rating. After all, what could that have to do with your auto insurance policy? Plenty, as it turns out. Insurers noticed some time ago that those with lower credit scores tend to have more accidents and as such, your credit will be checked and you will be socked with higher fees if you suffer from poor credit ratings.
We’ll Make it As Hard as Possible to Understand How Premiums are Calculated
We’ve touched on this previously when discussing the question of how much your auto insurance rates might go up when you have an accident. However, as a rule, general auto insurance companies really don’t want you to know how they calculate their premiums. If you did, it might be too easy to compare car insurance rates across different carriers. While you can demand a copy of the surcharge chart (which shows what you’ll pay for an accident), expect it to be really cryptic and hard to read.
We’ll Pay to Repair Your Car – But Not for Lost Value
Even if your car insurance policy does pay to fix your car after an accident, you will still lose money. A car that has been repaired is never worth what it would have been worth if it had never seen the inside of a body shop. However, your auto insurance policy will only cover the cost of repairs, not the diminished value of your now repaired car.
We Low Ball the Value for Repairs and Totaled Cars
Another dirty little secret about your inexpensive auto insurance policy is that the company retains the right to set the amounts that you can be paid for your car after an accident. And often, those numbers are much lower than what you might find on Edmunds or Kelly Blue Book. You do have the right to contest the offer from your insurance company and to try to negotiate a higher payment, but you’ll still likely lose value on your totaled or repaired car. This is simply because the general auto insurance company wants to spend as little as they possibly can to settle your claim.
If you work with a full service agency to compare auto insurance policies, they often will try to steer you toward one specific policy over another one. While many agents are honest people who really do have every intention of helping you get the cheapest auto insurance you can with the coverage you need, some will deliberately steer you toward the coverage that gets them the biggest commissions. If you feel like your agent is pushing you toward a specific policy, feel free to ask about commissions and make sure the policy really is in your best interests.
Bad Credit Can Cost You Big Money
When shopping for general car insurance, the last thing you’re likely to think about is your credit rating. After all, what could that have to do with your auto insurance policy? Plenty, as it turns out. Insurers noticed some time ago that those with lower credit scores tend to have more accidents and as such, your credit will be checked and you will be socked with higher fees if you suffer from poor credit ratings.
We’ll Make it As Hard as Possible to Understand How Premiums are Calculated
We’ve touched on this previously when discussing the question of how much your auto insurance rates might go up when you have an accident. However, as a rule, general auto insurance companies really don’t want you to know how they calculate their premiums. If you did, it might be too easy to compare car insurance rates across different carriers. While you can demand a copy of the surcharge chart (which shows what you’ll pay for an accident), expect it to be really cryptic and hard to read.
We’ll Pay to Repair Your Car – But Not for Lost Value
Even if your car insurance policy does pay to fix your car after an accident, you will still lose money. A car that has been repaired is never worth what it would have been worth if it had never seen the inside of a body shop. However, your auto insurance policy will only cover the cost of repairs, not the diminished value of your now repaired car.
We Low Ball the Value for Repairs and Totaled Cars
Another dirty little secret about your inexpensive auto insurance policy is that the company retains the right to set the amounts that you can be paid for your car after an accident. And often, those numbers are much lower than what you might find on Edmunds or Kelly Blue Book. You do have the right to contest the offer from your insurance company and to try to negotiate a higher payment, but you’ll still likely lose value on your totaled or repaired car. This is simply because the general auto insurance company wants to spend as little as they possibly can to settle your claim.
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