This is a continuation of our previous auto insurance blog, “8 Things You Need to Know About Auto Insurance, Part 1.” Here we deliver four more vital pieces of auto insurance information that every driver should be aware of.
5. Driving on “Auto Pilot” May Cost You
If you plan on sticking with the same auto insurance company you had since you were 16 years old, you may want to reconsider. Rather than letting your insurance policy automatically renew each year, compare rates with other providers. Insurance rates can differ dramatically from provider to provider. Lower rates don’t have to equate to less coverage or poor service, either; it is absolutely possible to find affordable premiums, well-rounded coverage and excellent customer service under one roof. Being open to what else is out there could save you precious dollars.
6. Ask Questions
When you ask questions, you are more likely to get answers. Ask your insurance company about everything from how much premiums are for various makes and models of vehicles, to their policy on first at-fault accidents. Ask about what discounts you may be eligible for based on your age, having multiple policies with your provider, driver training, car features, and more.
7. Cancel Your Policy with Grace
If you’ve decided that switching auto insurance companies is in your best interest, take the necessary steps to cancel your existing policy before you make the big switch. Simply ignoring the bill is not in your best interest. Taking this route can cause a whirlwind of headaches, from being reported to the credit bureau for nonpayment (which shows up on your credit record) to being charged higher premiums by your future provider, or having your application declined altogether. Instead, you need to officially cancel your insurance policy and complete all necessary paperwork with your current provider. Plan ahead and have the start date on your new policy begin on the date your old policy ends.
8. Your Insurance Company Can Cancel at Any Time
If you fail to follow your auto insurance provider’s guidelines, you risk having your policy cancelled or non-renewed. For example, if you let other people who are not on your policy drive your car and they keep getting in accidents, you risk an angry insurer and a cancelled policy. When it comes to cancellation, you must be given a reason – and if you aren’t, you must submit a written request for a reason – but this is not so with non-renewal. If you feel as though you’ve been treated unfairly, you can contact the Massachusetts Devision of Insurance for legal recourse.
For more insight on the auto insurance process, contact our agents at T.J. Woods Insurance Agency. We are here to act as your source of knowledge and piece of mind when it comes to navigating insurance policies and choosing what is best for you and your family.
