{"id":23300,"date":"2020-10-20T16:35:49","date_gmt":"2020-10-20T16:35:49","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/?p=23300"},"modified":"2022-06-03T09:01:17","modified_gmt":"2022-06-03T09:01:17","slug":"5-important-facts-about-car-insurance-you-might-not-know","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/5-important-facts-about-car-insurance-you-might-not-know\/","title":{"rendered":"5 Important Facts About Car Insurance You Might Not Know"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n<p><span style=\"font-weight: 400;\">Insurance is always a tricky bit of business, whether you\u2019re getting it for your home, company, or car. However, there are a few things of which many folks aren\u2019t aware.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This article will cover five critical facts about <\/span><a href=\"https:\/\/www.brokerlink.ca\/insurance\/car\/ontario\" target=\"_blank\" rel=\"noopener sponsored\"><span style=\"font-weight: 400;\">car insurance<\/span><\/a><span style=\"font-weight: 400;\"> with which you might not be familiar. From discounts to risk factors, payment practices to cancellations, many things might impact your current and future premiums.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Without further delay, let\u2019s get right into the details.<\/span><\/p>\n<p><img loading=\"lazy\" class=\" wp-image-23301 aligncenter\" src=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2020\/10\/New-blog-1.jpg\" alt=\"\" width=\"684\" height=\"382\" \/><\/p>\n<h2><b>Your Credit Rating May Impact Your Premium<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Did you know that your credit could have an impact on your insurance premium?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Providers are continually finding and using new ways to evaluate clients and create risk profiles. That isn\u2019t news to most of us, and you\u2019re likely aware of how these assessments work. However, insurance agencies found that specific credit characteristics could be used to make more accurate calculations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Instead of using the numbers to determine your lending risk in the way that a bank or lender might, providers use it in conjunction with other variables to assess you and predict how likely you are to submit an insurance claim.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, they could combine your credit rating with your age, driving record, where you live, the car you drive, your claims history, and even how many miles you\u2019ve driven. The results will give the provider a better idea of whether you\u2019d be a high-risk client or not, and the insurance agency can then decide what premium they\u2019ll offer you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To increase your chances of <a href=\"https:\/\/www.findthebestcarprice.com\/extreme-ways-to-lower-car-insurance-premiums\/\">getting a better rate<\/a>, try to improve your credit score and request regular reports to make sure you\u2019re on track. If you find any errors, take the time to contact the bureau to straighten them out.<\/span><\/p>\n<h2><b>Sticking to Your Insurance Provider Can Cost You<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">For most of us, getting car insurance is a one-time concern. Once you have it, why would you need to revisit the issue, after all? You might want to reconsider that decision.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As mentioned above, insurance providers use several factors to calculate your premium. However, today, there are many different criteria, and most of these companies don\u2019t even use the same ones to calculate their rates. In other words, your premium might differ significantly from one agency to the next.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before you let your policy renew automatically, make an annual comparison. Shop around for a few different quotes and see who offers you the most comprehensive coverage at the best rate. Depending on the type of insurance you\u2019re getting, you could go through a broker or agent, or go straight to the company.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Keep in mind that the cheapest isn\u2019t always better, but neither does \u201cexpensive\u201d equal \u201cquality.\u201d Find a provider or policy that provides you with well-rounded coverage at an affordable rate. Checking for online customer reviews is always good practice if you\u2019re considering a new insurance agency.<\/span><\/p>\n<h2><b>Don\u2019t Forget About Discounts<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">While it\u2019s no secret that you can get <\/span><a href=\"https:\/\/www.forbes.com\/advisor\/car-insurance\/discounts\/\"><span style=\"font-weight: 400;\">discounts on your premium<\/span><\/a><span style=\"font-weight: 400;\">, most people aren\u2019t sure how to qualify or claim them. Unfortunately, this means that you\u2019re likely paying more on your premium than you need to and, while the discounts might not be significant, every penny counts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are a few different types, such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Being accident-free for three to five years.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Having an affiliation to a particular club, school, employer, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Installing anti-theft systems into your vehicle.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Taking a defensive driving course.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Having emergency roadside assistance.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Owning an environmentally friendly or hybrid car.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Being a loyal customer.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These are just some of the discounts you can get, and they can reduce your policy by as much as 25%. Keep in mind that there may be other caps and restrictions in place, particularly if the provider uses \u201cup to x%\u201d in any promotional material. However, even a small percentage is still a penny saved.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re unsure whether your provider has any discounts that you qualify for, don\u2019t hesitate to reach out. Most will be happy to help you since it\u2019s more likely to turn you into a loyal, long-term member.<\/span><\/p>\n<h3><b>Save Money by Paying in Full<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">While it\u2019s not strictly a discount, you can save money by paying your annual premium upfront. Many consumers don\u2019t know that car insurance companies charge an administrative fee for the extra work it takes to break your premium into instalments.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many agencies will let you pay every six- or three-month period, or even make monthly payments. However, the more you break up the annual amount, the higher the administrative fee. As a result, your \u201caffordable\u201d premium might increase significantly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You may pay even more depending on the payment method you pick, or if you prefer a physical paper trail over paperless documentation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before you choose a company or policy, always find out what the administrative fees are first. If you can manage it, try to pay your annual premium upfront. It\u2019ll save you more money in the long run, but you\u2019re also less likely to pay late or miss a due date completely.<\/span><\/p>\n<h2><b>Cancel Your Policy the Right Way<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Now that you know you need to shop around for the best insurance premium relatively frequently, it\u2019s time to understand how to cancel your policy the right way.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many consumers think it\u2019s as easy as stopping payment and moving on to the next provider. Unfortunately, that\u2019s not the case. Yes, the company will cancel your policy, they\u2019ll likely also report you to the credit bureau for nonpayment problems.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Not only will this damage your score, but your insurance history will also reflect the cancellation and the way you went about it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We mentioned earlier that agencies check up on your credit and use the info to help calculate the rates you pay. As a result of a poor cancellation, your next premium may be significantly higher. Worse, other agencies may altogether decline your application.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re planning on cancelling your policy, follow the correct steps. Your insurance provider will have certain documents that you may need to fill out, and there may be a final payment required. The provider might even offer you a few valuable perks or discounts to try and change your mind.<\/span><\/p>\n<h2><b>Your Car Insurance Company Can Cancel on You<\/b><\/h2>\n<p><img loading=\"lazy\" class=\" wp-image-23302 aligncenter\" src=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2020\/10\/New-log-2.jpg\" alt=\"\" width=\"651\" height=\"434\" \/><\/p>\n<p><span style=\"font-weight: 400;\">If you think you\u2019re the only one allowed to stop your car insurance policy, think again. If you violate any of the company\u2019s guidelines or rules, <\/span><a href=\"https:\/\/www.investopedia.com\/ask\/answers\/091815\/can-your-insurance-company-cancel-your-policy-without-notice.asp\"><span style=\"font-weight: 400;\">they can cancel<\/span><\/a><span style=\"font-weight: 400;\"> on you. There are a few other reasons why the insurer may decide to cut you off, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Failing to pay your premium by the due date.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Your driver\u2019s license is being suspended or revoked.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Submitting too many claims where you\u2019re at fault.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Misrepresenting your driving history.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Providing false information about your insurance history.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The agency is still required to send you written notice and state why they\u2019re cancelling your insurance. However, that\u2019s not the case with nonrenewal, and you\u2019ll have to submit a written request to find out why the policy has been cancelled.<\/span><\/p>\n<h3><b>The Binding Period<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Many insurance companies have something called a \u201cbinding period.\u201d It\u2019s usually 60 days long, and during this time, the agency will pay close attention to you and your risk level.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the insurer finds any discrepancies or issues on your application, driving record, or credit report, it can immediately cancel your policy.<\/span><\/p>\n<h2><b>Take Away<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Car insurance is something we all need to have, but it\u2019s a costly expense, and the rules can often come across as overly complicated and confusing. However, by doing a little research, you can prevent landing yourself in hot water with your insurance agency while saving a few dollars in the process.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Remember to check on your credit rating frequently, and make sure there aren\u2019t any issues that can affect your premium or an application to a new insurance agency. Shop around for the best possible prices annually, and don\u2019t forget to ask about discounts and administrative fees.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you decide to change to a new agency, take the appropriate steps to cancel your existing policy the right way. That way, you can avoid running into problems with future insurers. Finally, remember that the company can cancel on you if you violate their terms or lie on your application.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hopefully, you\u2019ll now be better prepared to get the most out of your car insurance policy in the future.<\/span><\/p>\n<h6><span style=\"color: #999999;\">Ref number:\u00a0THSI-1985<\/span><br \/>\n<span style=\"color: #999999;\">THSI-2580|ZD.25166<\/span><\/h6>\n","protected":false},"excerpt":{"rendered":"<p>Insurance is always a tricky bit of business, whether you\u2019re getting it for your home, company, or car. However, there are a few things of which many folks aren\u2019t aware. This article will cover five critical facts about car insurance<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/5-important-facts-about-car-insurance-you-might-not-know\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":81,"featured_media":15793,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"no","_lmt_disable":"","spay_email":""},"categories":[1],"tags":[],"wl_entity_type":[602],"modified_by":"Editor","_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/Insurance.jpg","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/5_important_facts_about_car_insurance_you_might_not_know","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/23300"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/81"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=23300"}],"version-history":[{"count":3,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/23300\/revisions"}],"predecessor-version":[{"id":27542,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/23300\/revisions\/27542"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/15793"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=23300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=23300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=23300"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=23300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}