Questions to Ask Before Purchasing Your Next Insurance Policy or Vehicle

First of all, find out if your insurance company is considering your credit report.  Most companies do take it into account.  Your credit score can affect your insurance score which in turn affects your insurance rate.  You can find out a close approximation of your insurance score here.

If you are trying to decide between several cars, ask your insurance company for estimates of the insurance costs between cars.  This might help you in making a decision or change your decision based on the cost of the insurance premium in addition to the purchase price of specific cars.

There are other things to be aware of well.  For instance; most, if not all insurance companies, do not cover personal items in your vehicle.  Make sure to inquire about exact coverage details of your prospective insurance plan.

Also, inquire about programs that some companies have like “accident forgiveness” programs.  Others will always increase your premiums in the event of an accident if you are at fault.  Be sure to ask about your company’s policies and the proper process concerning this type of situation.

If your car is damaged in an accident, insurance companies may use their own proprietary system for evaluating your vehicle’s value.  You may not be able to determine this exact figure by checking one of the standard car evaluation tools like Kelly Blue Book.  It can help in comparing companies to get an idea of how the company evaluates the replacement cost for vehicles involved in an accident.

Find out if your coverage includes Gap insurance.  If you need a replacement car and the company figures the current value of your car for less than you owe, Gap insurance will cover any difference between these two amounts.  Some policies include this coverage automatically, but in other policies Gap insurance has to be purchased as additional coverage.  Make sure to also note if a company’s particular plan gives you the option to cancel this coverage when your loan amount becomes less than the car’s current value.

Check to see if you fall into any special categories that may qualify you for a discount.  These can include your profession, your age, your driving record, or special features of your vehicle.  Companies should also be willing to offer discounts in order to encourage you to make multiple purchases.

Copyright of newcardetail.com.  All rights reserved.

Return to Main Articles Page