In every state some form of auto insurance is required in order to register or operate a motor vehicle. This is mostly due to the fact that uninsured motorists account for countless costs to drivers who are impacted by their negligence. The states have all stepped in to ensure that vehicles are properly insured and operated with diligence. Because of these mandates, you are likely to be one of the millions annually shopping for auto insurance.
Knowing how to find helpful auto insurance tips can help you lower costs and get better coverage. Direct Insurance Network knows how important it is to you to find a great value on your auto insurance policy.
Auto Insurance Tips
Auto coverage can be costly and confusing. You may find yourself asking “what am I paying for anyway?” This is a great question. As you walk through the process of reviewing your auto insurance options, here are some tips for finding out exactly what to be paying attention for. Read through these auto insurance tips to see what can be helpful for you.
Insurance Rating Structures:
While some insurance plans offer a flat rate based on a number of underwriting factors, new insurance plans that take into account your driving habits have been on the rise. It’s important to note that if you are a long-distance commuter and you drive over 20,000 miles per year, this may not be the best option for you. One of the reasons why we put together these auto insurance tips, is for the small tidbits that you may not be awre of.
A number of insurance companies are no providing devices to install in your vehicle to track the safety of your driving and the frequency of your driving. Through your consent on sharing this information with the insurance provider, they are able to take your driving activity into account and provide you a rate based on your habits. While this isn’t for everyone, if you have a short commute and are an All-Star driver, this may be something to explore as you look at auto insurance plans.
Myths on Age and Driving Record:
You’ve likely heard time and time again that after the age of 25, your rate will dramatically decrease because you’re considered a safer driver. That may be one of the reasons why you went to Google to search for auto insurance tips. While this could just happen to be true in some states on some policies, this is not a universal rule. The fact is that each insurance carrier has filed their rating structure with the Department of Insurance in each state.
The rate is based on a wide array of statistical information that is created based on a number of “risk-factors.” Because of this, there’s no hard and fast rules as each company develops the rate on their own. This is why Direct Insurance Network works with a number of carriers to find out which insurance company’s rules apply in a way that best benefits you directly.
Right Vehicles, Right Drivers, Right Coverages:
You may have already compared your auto policy to a family member or a friend’s. As mentioned above, your rate is determined specifically for you based on the auto policy rules so it’s possible you’re seeing a very different rate even though you have similar vehicles. Comparing apples to apples, the side by side comparison may be confusing because you and your friend have very different policy profiles. This means taking into account what drivers, other vehicles, and coverages that you’re carrying. Auto insurance tips doesn't just have to be something specific to carriers.
When Direct Insurance Network works to find a policy that fits your situation, we ask specific questions to ensure that you’re not paying for a relative that lived with you several years ago or your younger sibling who has their own policy. You should only be paying for the exact vehicle and drivers that you desire and just because someone moved out of your home doesn’t mean they were removed automatically.
The coverages on your policy are also important to look at. Direct Insurance Network knows that you don’t want to be overpaying for that ’98 Toyota anymore. Ask for assistance when quoting your coverage. It’s likely that the month over month cost of full coverage on an older car is going to cost more than what your out of pocket cost would be to start repairs or replace the vehicle. It’s often in your best interest to stash that extra amount that you’d normally pay to premium and save up for a new car. Now, a common mistake is taking all the coverage off or carrying deductibles over $1000 in order to keep monthly payments low. While this is maybe a recommendation you may have heard, it’s apt to leave you with empty pockets in the event of an accident. Upwards of $1000 can be hard to come up with on the fly.
Working with an insurance counselor to find out what options are best for your coverage and learning about the auto insurance tips right for you, is a mindful practice that is highly recommended at Direct Insurance Network.
Understanding What You're Paying For
The best tip out of the auto insurance tips, is knowing what you’re paying for. The best way to make sure you understand exactly what your premium is going towards is reading your declaration page. After purchasing your policy with Direct Insurance Network, you’ll receive a page via email or snail mail describing each coverage on your plan with a break down of each cost. Cost education is an important part of auto insurance tips.
As your review the Declaration page, you can circle any coverages that don’t make sense and contact your provider in order to better understand if this is an elective coverage and if your current situation warrants that kind of protection. Ultimately, the goal is to find the best coverage with the greatest value. Direct Insurance Network works to identify exactly that so you can enjoy your time out on the open road.