Avoid The Pitfalls Of Auto Insurance
In order to operate a motor vehicle we are required to purchase auto insurance for the priveledge. In general we walk into an insurance agency with little to no knowledge about the process, willing to accept what's handed to us with minimal information about what's actually covered.
People tend to trust those in business, we follow blindly their directions and commands giving no thought to possible problems! After all, this person is a professional right? This especially applies with auto insurance. We cling to our policy, believing it to be the best without realizing the possible pitfalls.
Some people buy car insurance as it is required by law. What people generally do is they log on to the internet and obtain cheap car insurance quote. They compare these quotes and buy a cheap car insurance policy for themselves. They do not go into the details and just remain ignorant about the vital aspects of their insurance policy.
One of the pitfalls of car insurance is that people do not read the fine print before buying car insurance. They just skim through the basics and do not try to understand the repercussions of various clauses. If a person is paying below average insurance premium then, there are chances that his car will not have proper coverage against various kinds of harm. He might be saving some premium each month but in the event of an accident or theft he will get lesser compensation. So if a person pays low premium it does not translate into more savings.
Many insurance companies offer special services such as road side assistance, and free car rentals. Many people have been at the scene of their accident, traumatized, possibly even injured only to hear when they think they have someone to take care of their car, an extra fee of some kind is involved. There may also be penalties to be paid for something as simple as changing your location to another state!
Similarly free rentals are provided for specific time period only and when buying the car insurance, people do not look into these details. Suppose the insurance company gives free rentals only for 10 days and a person does not get his car back from the repair shop till 20 days then he has to shell out the money for the next 10 days from his pocket.
When a person insures his car he does not get insurance cover for any valuable items he has in his car. A person has loads of cash or some very expensive item in his car. The car gets stolen and the item inside the car also is lost. The insurance provider will let the car owner file a claim only to the extent of the car value. He cannot claim for the objects or cash he had in his car and which he lost. This is true in case your sound system, mobile phone, briefcase etc is stolen from your car.
Remember, you get what you pay for. When purchasing auto insurance, always ask questions! Who is covered to drive my car under this policy, what exactly is covered in case of accident? Always always remember to read the fine print! It can mean the difference between a horrible nightmare, or a minor inconvenience when involved in an accident.
Filed under: Cars