Consumers insurance

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.

It's human nature to want to trust. We go into a business with confidence that the person inside knows what they are doing, and wouldn't lead us astray. This often leads to anxieties and dissapointment in the end when we learn this isn't always the case.

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.

Insurance companies at times promote their policies highlighting services like road side assistance and free rentals in case of an accident. Many people have found to their dismay that road side assistance provided during accidents is charged and often people end up paying hefty charges for the same. Similarly policies of claims vary across states and if a person has bought insurance in one state and moves to another state then, this will have an impact on his claims in case of an accident or theft. It is crucial to check if there will be any impact on your claim in case of relocation to another state.

Those rental car promises look good in writing, however in many cases these \"free\" cars only apply for the first few days after your accident, leaving you with a pretty steep bill if your car takes longer to repair than they think it should!

Many times we store valuables in our car, secure with the idea that no one will touch them. How many times have you left your laptop, cell phone, or large amounts of cash in your car and walked away? Did you know that your car insurance only covers the actual car in the event of theft or damage? You could be stuck with the replacement cost of your valuables!

Some clauses in insurance policies let you pay lesser premiums. But it gives limited coverage too. If a person has bought a policy with named driver clause and his spouse has an accident while driving his car then probably he might not have any claim. He can claim only if the accident happened while he was driving the car. It is always better to read the fine print of your insurance policy to avoid the pitfalls of car insurance.

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