Simple Tips…How To Avoid Auto Insurance Problems

April 12, 2007
  1. Have all drivers listed! Check your policy carefully on each renewal to make sure that all licensed operators of your vehicle are listed and shown on the policy. People foolishly think they can “beat the system” and save money by not listing a spouse or a child. This only hurts your loved ones in the long run because he/she will have no record—and an accident-free insurance record can shave hundreds of dollars off your premiums.
  2. As simple as this sounds, make your monthly payments on your auto insurance policy. There’s really no excuse not to pay your bill on time, with all of the payment options most reputable insurance companies give you, including electronic funds transfer (EFT). Cancellations for non-payment can have long-reaching implications and are very costly. You may not even be able to obtain an insurance policy from the company of your choice!
  3. Be realistic about your auto insurance claim. Know that age, condition, and wear and tear on your car (depreciation) is factored. How do you protect yourself so the claim is fair for you and the insurance company? Keep the original bill of sale and have written on it the actual mileage of the vehicle at the time of installation by the tire installer.
  4. Take an active instead of a reactive approach to handling your auto insurance policy. Check your policy annually to make sure that your personal information and your vehicle’s information is correctly listed (marriage status, age, commute distance, driving record, and home address all affect your insurance costs). Make sure you are properly rated as your circumstances are today; not in the past.