When you shop around for affordable car insurance, you may see a lot of terms that you don’t understand. Instead of glossing over them and focusing just on cost, you should make sure you understand what everything means.
Some companies offer this feature for loyal customers who manage to avoid collisions and filing claims. A person may receive $100 off the deductible for each year they go without an accident until they reach $500 or another specified amount.
A person may not see their premiums increase if they are in an accident and this feature is part of their policy. It is usually only good for one accident for so many years. If you have a second accident within a certain time, it will impact your rates.
A component of this feature is violation forgiveness, which means if you get a traffic ticket, it also won’t hurt your rates. You are usually only allowed one violation for every three years or longer. Only certain violations count, such as speeding or failing to yield.
Deductible Waiver for a Total Loss
Some insurance companies will waive your deductible if your vehicle is a total loss. This means they pay out the total amount of the value of the vehicle. This benefits you when you plan to buy a replacement vehicle or need to pay off the loan for your totaled vehicle.
Continuous Insurance Discount
Some insurance companies offer a discount based on how long you have had a policy with them. Your discount may go up if you have a long term of coverage. You can enjoy more affordable car insurance coverage the longer you stay with a company. Of course, this benefits the provider as well because they don’t have to find a new customer to replace one that leaves.
When you are in an accident, you may have to pay for property damage to another’s property. This includes another vehicle, but it also may include other types of property. For example, you may hit a guard rail that needs to be replaced or run into a mailbox or stop sign. Any costs for repair or replacement from the accident would come out of your insurance provider.
Many people purchase affordable car insurance without even reading the fine print in their policies. They don’t pay attention to the details until they file a claim and find out that something isn’t as they expected.
It pays to read all of the details before signing the policy. At least you will know what to expect and you have the opportunity to ask questions about anything you don’t understand before it becomes an issue.