Automobile Insurance Tips
EXAMPLES OF DISCOUNTS, DEVIATIONS AND CREDITSYou may want to ask your agent or company if you are eligible for any discounts. Following are some examples of discounts being offered:
- You agree to an Electronic Funds Transfer.
- You are renewing your policy and did not have a loss or conviction during the last policy period.
- You are considered a mature driver (normally age 55, but ages for eligibility can vary by company).
Another way you can lower your premium is by increasing your deductibles. You can choose the deductibles on your comprehensive and collision coverages. In doing this you will want to consider how much of a loss you can afford to absorb if you have a claim.
SHOP AROUND (COMPARISON SHOPPING)
Shop around, you may find substantial differences between quotes. Make sure you are comparing identical coverages when comparing companies. Make sure you are dealing with licensed agents and companies. You can check this by contacting the North Carolina Department of Insurance at 1-855-408-1212.
CREDIT BASED INSURANCE SCORING
Most insurers use the information in your credit report to calculate a credit based insurance score. They do this because studies show a correlation between this score and the likelihood of filing a claim. Creditbased insurance scores are different from other credit scores.
PAYING YOUR PREMIUM
Pay your premium in full. Also, pay on or before the due date to avoid the risk of cancellation. There is NO GRACE PERIOD for automobile insurance. Use a check or money order. If you use cash, request a receipt, and keep it in a safe place.
Pay your premiums even if you disagree with your insurance company. Failure to make premium payments may cause cancellation of your policy.
Some consumers choose to finance their premium, often by using a premium finance company. When dealing with a premium finance company you should note the following.
- You are entering into a separate agreement with the finance company. Your insurance company is not lending you the money.
- The finance charges and fees associated with the loan will increase your total cost of insurance.
- The finance agreement must be in writing, dated and signed by you. Before the first due date of the first installment, the finance company must deliver a copy of the agreement to you or mail to your address as shown on the agreement.
- You should ask your agent for an explanation of the charges and fees associated with the agreement.
Before you buy your car ask about the cost of insurance. Some makes and models are higher risks than others and could result in a higher premium. With a few models, you may have trouble finding companies willing to provide Other Than Collision (Comprehensive) and Collision coverages.
DRIVING RECORD
Try to maintain a clean driving record. A key element in determining your rates is your driving record. Remember that insurance points will remain on your record for three years.
PARENTS OF TEENAGERS
If your child does not own a car, make sure the insurer knows which car the teen will be driving and whether it will be primary or occasional use. For additional information on teen drivers, please refer to our Teen Drivers brochure found on our web site.
COVERAGES
If you have an older model vehicle and it is not financed, the benefit from the purchase of Comprehensive and Collision coverages might not be worth the cost.
READ YOUR POLICY
Read your policy and make sure it lists all vehicles owned by you, along witih the coverages you have requested.
INSURANCE IDENTIFICATION CARDS
Make sure you have an insurance identification card. This will provide the necessary insurance information required from you at the time of an accident.