Six Auto Insurance Secrets You Should Know

Every driver wants to make sure they’re getting the best deal on car insurance, but dealing with providers can be a bit of a tricky business. Check out the below secrets from the car insurance industry to get up to speed before you sign for your next car insurance policy.

Secret #1: Car Rental Agencies are Trying to Sell You Coverage You Don’t Need

The next time you rent a car and the salesperson pitches the importance of a collision damage waiver (CDW) policy, you can feel confident politely declining. As long as you have full coverage on your own vehicle, you don’t need CDW to drive a rental.

Secret #2: Be Careful Lending Your Car to a Friend

Even if your friend has auto insurance on their own vehicle, an accident that occurs while they’re driving your ride puts you at risk of long-term damage to your driving record. That means greater car insurance costs in the future.

Secret #3: Better Credit Scores You Lower Insurance Costs

Many people don’t realize that auto insurers are checking their credit scored, but this is a common practice. If you have a good or excellent score, you’re much more likely to get a good deal on car insurance.

Secret #4: Your Insurer Values Your Vehicle Differently

If you total your car and you’re expecting your car insurance company to provide the money to replace it with an equivalent car, you may get an unlucky surprise. Insurers have their own processes to value your vehicle, which often assign it less value that you’d find in consumer publications like Kelley Blue Book.

Secret #5: Married People Get the Best Rates

Though it doesn’t make much sense, data shows that people who are single, widowed or divorced pay more for car insurance than married people. This is a legal practice because there is also data that indicates married people are less likely to be involved in an accident.

Secret #6: You’ll Pay More if You Live in a City

Where you live is a major determination in how much you’ll pay for auto insurance. City dwellers who must navigate more traffic than their suburban counterparts will pay more.

As with most consumer purchases, the more you know about auto insurance, the better placed you’ll be to capitalize on the best deal. Use these six secrets to your advantage before getting your next auto insurance policy.

Image via Unsplash/Jackson David