Have you ever noticed that a ton of the advertising you receive over television, computer, and in your mailbox seem to have something to do with your car insurance? It seems that we all can save hundreds of dollars a year over our current insurer and apparently with no loopholes.
How is this possible? Well, in the world of for-profit insurance companies being beholden to share holders, it isn’t. There are corners cut, small print written, and of course, beyond what the advertising tells you, loopholes large enough to shove your damaged car and all of the loose parts left on the roadway through.
But are all insurance companies created equal? Not really, but there are loopholes they have in common that you should know in order to have the lowest rate possible and still get your car fixed or replaced.
10 Auto Insurance Secrets
- What Kind of Vehicle Do You Own? Your vehicle is rated on a scale from 1 to 27 based on risk. While you may not be able to get your car insurance company to tell you the “number” of your vehicle specifically, it is essentially a rating based on the value of the vehicle, safety ratings, and theft data. This greatly effects your premium.
- What’s Your Car Really Worth? Totaling a car is easier than many people think, particularly with new technology and the engine being valued higher the body of the car. Gone are the days of the rolling movie explosion in order to render the car unsalvageable. Many discount auto insurance companies are able to provide more affordable car insurance solely because they undervalue your car. This means that if you do total it, get ready for either a downgrade or new loan.
- What’s Your Car’s History? Every time you repair the car the value goes down. God forbid if you’ve gotten into a previous fender bender. If you total a vehicle that has been in an accident previously, the insurance company will strike all of those instances from the value of the car and give you less regardless of the value of the loan, the purchase price, or the blue book.
- Will You Have To Pay Tax on Your Replacement Vehicle? Not in the state of Washington! Your car insurance company is required to pay it. If you live in other states (particularly the South), sorry, be prepared to shell out. The states do not require that you pay sales tax on replacement vehicles include: Alaska, Arizona, Arkansas, California, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Kentucky, Maryland, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New York, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Vermont, West Virginia and Wisconsin.
- What Happens If the Accident is Your Fault? The insurance company should still replace the car if loopholes such as DUI or reckless driving aren’t involved. But expect your insurance to go up…way up. In the instance of an at-fault accident, expect your car insurance premium to rise by 40%. Of course, auto insurance companies will vary in this regard, but 40% is the industry standard.
- What is Covered By Insurance? Look closely at your policy. You will find a section on what it covers, but there is an accompanying book on what they don’t cover. May you look at it? No…no you may not. But we’ll tell you that most car insurance policies will cover your pet if it is riding in the vehicle when you have an accident. That’s nice of them right? But they will not cover weather damage, theft (the car or items in the car), or vandalism…three things that are most likely to happen. What if your dog is stolen out of your car? Don’t ask.
- Do You Have Good Credit? Insurance companies have found that good credit means you are statistically less likely to be involved in an accident. It also means that you are less likely to change car insurance companies for fear of the effect on your credit score (inquiries, number of accounts, etc.). This translates to lower premiums, congratulations.
- Does My Payment Method Count? Not to a huge extent, but it helps. By paying in one lump sum rather than month to month, paying online, and setting up auto pay from your bank, you can lower your premium. Not by a ton, but every little bit helps right?
- Can I Lend My Car To A Friend? Some policies allow you to do this, but in general almost all don’t. If you have someone that borrows your car all the time, perhaps you should try specifically naming them on your auto insurance policy or purchase a rider to cover anyone who borrows your vehicle.
- Does Switching Insurers Effect My Premium? Some companies say that all it takes is a few minutes to switch and that they’ll do everything for you. Don’t believe them. If you switch insurers, you should notify your previous company that you are canceling your policy. Doing this by phone is painful. A much more official and efficient method is to send the notice in writing and include the specific date that you want that insurance to terminate. Also send proof of insurance from the other company.
Car Accident Attorneys Protect Consumers
If you are in a car accident some companies honor their contracts, but some do not. It is not in many insurance company’s business model to pay insurance claims and to do everything they can to prolong the process, exasperate the customer, and find ways to avoid paying so that the customer will just give up.
This is particularly true in the event of a personal injury accident. Insurance companies will send representatives to hospitals and homes in order to get their customers to sign away their right to fair compensation for their injuries.
If you or someone you know has been injured in a car accident anywhere in Washington state, you need a skilled lawyer to deal with the insurance companies to assure you the best settlement. Call the Seattle car accident attorneys at Phillips Webster for a free consultation.
Learn More About:
- Washington Law and Car Accidents
- Car accidents and insurance coverage
- What to do in a car accident
