Some of the other questions to ask your car insurance agent include:
- When do I renew my policy?
- How do I file a claim?
- Can my credit score affect my premiums?
- What is my risk assessment?
- The valuation process for my vehicle
- How your car will be repaired in case of an accident
- If the policy covers the cost of the original parts
Ways To Ensure Your Premium Does Not Increase Dramatically Upon Renewal
If your policy expires and you need to renew, you may notice that your insurer has increased the premiums, especially if you were previously involved in an accident. Some of the ways to ensure that your premiums do not increase dramatically upon renewal include:
- Inform your insurance company about the accident as soon as it happens
Most of us tend to ignore minor accidents where no one gets injured, or no property gets damaged. This is because we don’t want our premiums to increase. We forget that we are not the only party at the accident scene, and weeks or months later, you may find that the other driver sues you.
Since you failed to report when it happened, your insurer may refuse to honor the policy, leaving alone to sort the legal fees and any potential judgments rules in the plaintiff’s favor.
And even if your insurer chooses to protect, you’d have denied them quality time to investigate the accident and prepare your defense material, increasing the odds of your losing the case.
And what you were avoiding happens, and in this case, your premiums will be higher. So no matter how minor an accident is, please inform your insurer, as it will save you lots of headaches and money.
- Ask for an accident forgiveness clause in your policy
Accidents are part of life, so ensure that your insurance company is willing to turn a blind eye to your first and minor accidents and not hike your premiums. Some insurers offer an accident forgiveness clause to their client as soon as you signup with their company, while others wait until you’ve been with them for several years.
- Shop Around
If you are not happy with your renewal rate, shop around. Although you’ll still pay more if you don’t have a clean driving record, some insurers will still offer you a slightly lower rate. But ensure that you are not underinsured.
- Increase your deductibles
If your insurance company raises your premium, you can lower them by increasing your deductibles. But make sure you can afford the money at a moment’s notice because accidents do not knock. You ensure that you have the deductibles by increasing the amount in your emergency fund.
- Take advantage of discounts
If you’ve been a loyal customer, your insurer will offer you a certain discount. Also, if you’ve driven for less than 10,000 miles per year, your insurer can afford you some discount. This is because insurance companies assume that people drive for an average of 10,000 miles per year.
Final Thoughts
When getting car insurance coverage, you must know all the questions you need to ask your car insurance agent. This ensures that you get the kind of coverage you want and that it does not leave you vulnerable or underinsured in the event of an accident.
It is also important to know how to reduce your premiums when subscribing or upon your policy renewal. Ensure that you are informed about the changes concerning your policy by checking in with your car insurance agent.
It’s also good to form a good relationship with your insurer to ensure that you are afforded a quick response in case of an accident.
