We all need car insurance, or else we’re not technically allowed to drive our vehicles on the road! Aside from that, it’s in place to protect us if something happens out of the blue. Your insurance can help cover repairs, or come to your aid if you suffer a car accident.
Most of us have a basic understanding of how car insurance works, but there are a few things that you probably didn’t know. More often than not, this is because car insurance providers are trying to hide them from you! So, here’s what you don’t know about car insurance:
Insurance companies aren’t your friends
It feels like insurance companies are here to help. They act like they’re your best friends, with promises of healthy premiums and assistance when you’re in a tight spot. But, if you ever end up in a tricky situation where you need to make a claim, you’ll quickly find out that your car insurance provider is far from your friend!
These companies do all they can to damage your claims and deny them. Why? Because it means they don’t have to pay out any money – or they can at least limit it. If you click to visit this website, you’ll see that it talks about how insurance companies act after car accidents. Commonly, they try and get you to admit fault, which damages your claim. Or, they offer a pathetic settlement that ensures they pay the bare minimum!
As such, it’s always wise to seek legal advice if you ever need to file an insurance claim or need help after an accident. With legal representation, you’re guaranteed to get the best possible outcome, even if your car insurance provider hates it.
You’re free to switch providers
A lot of insurance companies like to make you feel as though you’re with them for the long term. Realistically, most contracts last for a year. You’re actually free to shop around whenever you like and switch insurance providers. In fact, this is highly recommended if you want to get the best deals and save money.
You see, lots of providers have new customer offers that you can take advantage of. By switching, you could save a fortune, and put all that extra money to good use. Don’t let a provider fool you into thinking you’re stuck in some long-term contract. If you want to leave, it’s always best to tell the company as they end up sweating and doing all the can to keep you.
Consequently, they might offer some new deals that are plucked out of thin air. It’s funny how car insurance suddenly gets more affordable the moment you threaten to leave your provider!
Men pay more than women
There are so many examples of inequality throughout the world. The gender wage gap is a real thing, and women frequently seem to have fewer rights than most men. But, when it comes to car insurance, the girls come out on top!
Ironically, there’s a stereotype that women are awful drivers. Whoever made that up was clearly jealous. The stats show that women end up in far fewer accidents than men. Not only that, but they cause fewer accidents as well. Therefore, you’re technically safer on the roads if you’re a woman.
So, this is why men pay more for car insurance than their female counterparts. Is this fair? Well, the stats suggest it definitely is. Of course, this is a general view of things. You will get some women who pay more for insurance than some men – other things come into account as well, such as your claims history, driving experience, and much more.
Your credit score impacts your car insurance
Speaking of factors influencing the cost of car insurance, your credit score is a big one. Now, in most scenarios, I understand why credit scores are used. It makes lots of sense to check a credit score if someone is applying for a loan or taking out a phone contract. You want to make sure that the person can be trusted to pay for everything, and that they have a positive financial history.
But, with car insurance, it just doesn’t make a great deal of sense. Mainly, this is because you pay for your premium in full straight away. So, how would your credit history impact this? Even if you have a bad score, it shouldn’t matter because you can pay for your insurance. The only time it becomes an issue is where you can’t afford to make the full payment so arrange for monthly installments instead.
Regardless of what I think, you can’t shake the fact that this impacts the cost of your car insurance. As you can probably guess, people with lower credit scores pay more than people with good ones. So, if you want an easy way to lower the cost of your car insurance, start by improving your credit rating.
Being at fault doesn’t automatically mean you have no case
In most situations, if you’re deemed at fault for an accident, then your insurance provider will try and arrange a settlement that goes to the other driver. However, you could still be entitled to some of that money.
Your car insurance provider won’t bother disputing this as they just want to pay as little as they can and be done with it. But, if you got legal advice, you could still have a case here. If you took things to court, it could be found that the other driver also made a mistake or contributed to the accident. As such, you might not get an even split of the settlement, but some of the money could come back to you.
It’s always a good idea to understand as much about car insurance as you possibly can. After all, it’s not something that can be avoided. If you learn about what impacts the costs and what your insurer does when you file a claim, then it helps you get the best outcomes.