Insurance is not a widely studied subject. People know the basics of course: what it is, why they need it, the different types of insurance, and so on and so on. Now I’m not saying that people need to go off studying insurance deeply, but I’m sure it would be nice to know some facts that aren’t so well-known.
1.) Your credit score affects your auto insurance rates. I know; in this day and age, what isn’t affected by the dreaded credit score? There has been research that there is a link between a credit score and the likelihood of filing a claim. There is also the fact that having a better credit score shows that a person is better at maintaining payments and keeping the same credit accounts, thus allowing insurance companies to trust a person more.
2.) Moreover, there is a common belief that color affects your insurance rates. Well, this is actually false. Even though color tends to show the personality of the driver, it has no effect on the rate of insurance.
3.) Also, it’s beneficial to use the same insurance company for your car and home for a multi-policy discount. Apart from just the money saving, it’s just nice to have them all with one company for ease of access as well.
4.) Ever buy a used car? Well, if a person is buying a used car, it is important to make sure that the vehicle history report is thoroughly reviewed to keep away from being tricked by people selling cars with preexistent problems.
5.) So, what happens if personal belongings are stolen during a vehicular theft? Well, it isn’t covered by your auto insurance; it is actually a part of your homeowner policy. It is recommended that you take pictures of these items inside the car and keep them just in case a theft occurs, because otherwise there would be no proof.
6.) Your occupation can affect auto insurance rates as well. A prime example would be engineers; it is deemed more unlikely that you would find them crashed into a pole or barricade. Another example is that teachers can receive a special discount.
7.) If you ever find the need to switch insurance policies, then make sure to cancel the old one. If you don’t then we are brought back to the credit score. If it isn’t canceled then it appears as canceled due to non-payment, thus lowering the credit score.
8.) A great bonus for the working folk is that insurance can be tax deductible. For example, if 28% of your driving is all for business, then it is possible to have 28% of it made deductible.
9.) Certain low-risk vehicles can lower insurance rates as well. Such as cars that are seemingly less likely to be stolen will bring in a lower rate. In addition to this, choosing a dependable repair shop is an important factor to making sure the car in in tip top shape.
10.) Make sure the insurance policy has the vehicle’s complete accuracy. Little things, such as 2-door for 4-door, model number, and mileage, can play a big part in rates.
These are just a few of the many factors that can affect insurance rates. There are many more in world of insurance, but sometimes it becomes difficult to differentiate between rumors and actual factors.