| Three Things You May Not Know About Your Car Insurance That Will Cost You Money |
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| Written by Ryan Williamson |
| Friday, 19 February 2010 22:25 |
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One: When switching insurers, you need to cancel your initial insurance policy officially.
One: When switching insurers, you need to cancel your initial insurance policy officially. Once you purchase car insurance, your insurance company is bound to state that you may cancel your coverage any time. All that is required of you is to inform the company in writing the date of the termination. However, many customers are under the assumption that all they nee to do to cancel their coverage is by ignoring the bill. Know that if the bill is not paid the second time around, the insurance company will terminate your account for non-payment and this will go to your credit record. What You Should Do: It is best to give your agent or any of your current insurance company's representatives a call and inform them about your account cancellation. Indicate the date of the termination otherwise; you might end up uninsured for a long time. Next, you need to wait until your insurance company sends you a cancellation request, for this, you will need to check for any errors before you sign anything. You will also have to prove to your former insurance company that you purchase car insurance from another provider. Two: You are responsible for your friend's poor driving. Regardless of the type of policy or the rates for car insurance that you paid for, it is your responsibility to file for a claim once you let someone else borrow your car and crashes it. You are also responsible for paying the deductibles that apply to your policy and yes, there is a likelihood of increased rates due to filing a claim. More so if you made recent claims. What You Should Do: If the person who used your car did not ask for permission, you may not be held liable for the damage. However, if your friend is not insured and have caused damages beyond your policy limits, the injured party may come after you for medical and property damage bills. Three: You will increase your overall bill if you pay in instalments. Whenever you divide your annual premium payments into instalments rather than paying a year's worth of coverage at once, you will be charged with "fractional premium". Although payment terms offered by most insurance providers are presented on a six-month, quarterly, or monthly basis, almost all companies will charge an administrative fee for dividing the payments. The more you break the fees down, the more charges will apply regardless of the rates for car insurance. What You Should Do: Always ask how much are the charges if you settle for instalments, right off the bat. If the charges will not cost you much, then it may be worth a shot. That said; know that insurance providers have the right to cancel your policy due if payments are delayed. The payment process is much more simplified once it is paid annually. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Looking to purchase car insurance? Get the best online automobile insurance quotes only at CarInsurance180! |