When it comes to an auto insurance policy, most drivers aren’t aware of the factors deciding the premium rates. Here are some pointers knowing which the drivers would be in a financially better position.
- Be attentive toward the credit score – Credit score can badly affect auto insurance rates. Experts say that there’s a direct connection between the credit score and possibility that the driver will file a claim. Moreover, providers of car insurance in Sunnyvale and Palo Alto know that drivers that pay their bills on time and have had the same credit account for longer period of time, are financially responsible and stable. They are less likely to make late payments or open & close accounts frequently. Auto insurers use all these important data while calculating the ‘insurance risk score’ for the respective driver. This is one of the key facts used for determining the premium rates.
- Ask for reimbursement if the car has met an accident – Drivers may ask for diminished value reimbursement on their vehicle if it has met an accident and got repaired. This is valid for states namely Washington, West Virginia, Virginia, Texas, South Dakota, North Carolina, Maryland, Massachusetts, Maine, Kansas, Louisiana, Hawaii, Georgia and Florida. However, this is possible only if the accident was not the respective driver’s fault.
- Ask for reimbursement while the vehicle is totaled – The auto insurance company is required to pay insurance for the replacement car if previous car is totaled. The residents of Wisconsin, Washington, West Virginia, Vermont, South Dakota, Oklahoma, Oregon, Ohio, New York, North Dakota, Nevada, New Jersey, Nebraska, Minnesota, Missouri, Maryland, Kansas, Kentucky, Illinois, Indiana, Hawaii, Florida, Georgia, Connecticut, California, Arkansas, Arizona and Alaska must ask for this reimbursement.
- Check with the insurer for sales tax on replacement cars – In the above mentioned American states, car insurance companies require to pay sales tax while someone replaces their totaled vehicle with a used or new car. So it’s always good to request (even in the state that doesn’t need this reimbursement). But avoid expecting the insurance company to offer paying upfront. It’s likely that the insurance company won’t discard the request.
- Listing car info properly on the insurance policy is a must – It’s required to list all the required vehicle information on the policy. Even the most trivial inaccuracy may create significant difference in the premium rates. For instance, improper mileage listed, a wrong model or a 4-door car for a 2-door car can make notable difference in the auto insurance rates.
- Get registered with AAA and get discounts – Being affiliated to AAA or other such organization ensures getting lower premium rates for auto insurance in Mountain View and Sunnyvale. Drivers may also check with their employers to verify if they provide any special group insurance rates.
These are just a few of many important facts that many drivers aren’t aware of.