When you’re getting your car insured, there are certain things that you look for in your provider. But while you may be looking at the price of your premium or which covers you can have on your car, there may be a few things that you’ve overlooked.
Many car owners will go with the lowest premium on their car and never look back. But the things you overlook when selecting car insurance can actually cost you more money later on. Here’s a look at some of the things you may want to check before you sign your name on your policy.
A policy is a contract
Like any contract, you will want to check the fine print. Signing up for any insurance policy means that you abide by the rules and regulations set forth by the provider. Certain violations, such as providing false information or failure to declare any material fact or circumstance concerning the vehicle or its operation, such as previous instances of speeding or drunk driving, can void the policy.
What you overlooked: Don’t forget to declare anything and everything related to your car or anyone in your household that can drive your car. This helps providers determine the correct premium on your vehicle.
A car priced at PHP 750,000 now may not cost the same in a few months. This is because the value of a vehicle goes down over time. But your policy will be based on the original value of the vehicle, and the premiums charged to you will be the same as a brand new vehicle – unless you talk to your insurer.
What you overlooked: As the value of your car depreciates, it helps to let your insurer know so that your premium is adjusted accordingly. This saves you money by preventing you overpaying on your policy.
When you get your car insured, you may acquire certain riders on your policy that might feel necessary at the time. It never hurts to be prepared for most possibilities when you drive a car. Some covers, such as Acts of Nature, are especially helpful especially now that it’s typhoon season.
What you overlooked: Other riders you found helpful at the time may not be necessary for you in the long run, and you end up overpaying on your policy. Review your policy when you renew it and figure out which riders you no longer need.
Your driving habits can affect the price you pay on premiums, or whether or not you can actually get a policy. Drivers without traffic tickets or incidences of vehicular damage will find that insurers are more likely to sell them a policy.
What you overlooked: If you happen to have an unpaid ticket, you might want to take care of it before you purchase insurance. Reckless driving or too many accidents can cause insurers to cancel a policy. In this case, there are insurers that specialize in insuring high-risk drivers.
A lot of people think the policy is written in stone and don’t bother to negotiate. Financial adviser and author Ramit Sethi said “be an expert when asking questions” when he discussed negotiating your policy with your provider. Most people won’t ask as many questions, trusting their providers to know what’s best.
What you overlooked: If you have a concern about your policy, don’t be afraid to ask! Asking questions allows insurers to further customize your policy according to your needs. Ask as many questions as you need, especially when comparing insurance providers.
Questions you might want to ask:
- What are my deductibles?
- What does my cover include?
Keep in contact with your insurance agent when it comes to your policy as often as you can. This allows you re-evaluate your policy as needed, which saves you money in the long run while ensuring you have the amount of coverage you need.
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