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Car insurance is a mandatory investment you have to make each day. There’s no alternative, and you can’t opt for any alternative at all. Buying good car insurance makes all the difference, especially when providing you with financial assistance on the road.
However, there are certain car insurance secrets that most insurers don’t tell you about. For example, you will hardly see insurers telling you about Dollar-a-Day insurance in New Jersey.
This article will unfurl some untold secrets about car insurance that you potentially don’t know or your insurers haven’t told you.
1. Car’s Make and Model Matters
When determining your car’s insurance, the make and model matter. This is effectively visible when insuring a high-end car model compared to budget-friendly cars. Another reason the make and model matter is that fixing a car like Mercedes involves much more money than fixing a standard car like a Toyota.
2. Avail Discounts by Paying for Minor Claims
It is common to think that you can claim every damage. However, this ends up disrupting the “No Claim Bonus” cycle. If you claim for minor damages like a scratch or a bump, thinking, “that’s what I pay the insurance for,” you are mistaken. If you can avoid claiming minor claims, be assured that it can enable you to claim extra discounts during the next renewal.
3. Save on Car Insurance Premiums
Car insurance is often a burden, right? Nobody wants to pay a hefty amount each month. But there are a few ways to save a good amount of money on your car insurance premiums. You just don’t know about it. If you are confused about how to avail some extra discounts, discuss your options with your car insurer. One of the easiest ways is installing an anti-theft device in the vehicle.
4. Claim History Makes all the Difference
Did you know that your claim history makes a difference in your premium amount? If you tend to claim for minor damage, be assured that your next insurance premium will be higher. Excess claim history directly regards you as a high-risk policyholder. However, if you have a claim history with minimal claims, that will work in your favor.
5. Know About the Types of Claims
Regarding car insurance claims, there are two primary types – cashless and reimbursement. Knowing when to claim which type of insurance makes all the difference. Ideally, if you are getting your car fixed from a network garage, it is best to avail yourself of cashless claims. We’d recommend familiarizing yourself with both options before you even finalize purchasing one for your car.
Conclusion
These are some hidden secrets about car insurance policies that your insurers don’t tell you. However, as a responsible payer, we’d recommend knowing about these will help you save a lot of money and get the best car insurance policy. Getting the best car insurance is crucial for your financial backup for your car, especially if you drive it quite often.
