5 Secrets Your Car Insurance Company Doesn't Want You To Know
While providing the car insurance, almost all of the car insurance companies tell drivers that in order to pay low premiums you must:
- Maintain a good driving record
- Take care of your vehicle
- Pay premiums always on time
Many drivers follow all of these guidelines faithfully in the hope that their car insurance premium will be low. Also, they have the confidence that their car insurer will help them in case if they ever met with an accident. What the average driver doesn’t know that there are a few hidden secrets that your car insurance companies don’t want you to know. They do so to take advantage of their customer by charging them more while cutting off their benefits where they can.
Here in this article, we’ve revealed some of the best kept secrets that car insurance companies hide from their customers:
Car Insurance Company Can Save a Lot of Money by Declaring your Vehicle a Total Loss
After meeting with a car accident that causes heavy damage to your car, either you believe that your car will be declared a total loss or you will have to buy a new one. However, this could actually cost you an arm or a leg. If your vehicle is damaged, you may recover it lesser than your vehicle’s worth. At least, it would be cheaper than what would it cost you to purchase a new one.
While on the other hand, having your vehicle declared a complete loss could be beneficial for your insurance company. It may cost a little less for the car insurer to declare your car a complete loss instead of repairing all the damages of your vehicle. Hence, they go for it so as to save a lot of money.
The Model of Your Vehicle Affects Your Premium
The type of car you buy has a great impact on premium. Unfortunately, your car insurer won’t reveal this information but there is a rating system for each and every model of car. Through this, car insurance companies calculate & determine the insurance premium. This is the reason why you feel that car insurance premium costs are nothing exorbitant yet normal.
So, if you are planning to buy a new car then you should ask your car insurance company about the different insurance premiums for the cars that you’re going to buy. Also, you can compare car insurance Dubai to get the lower premiums.
More Gadgets Equals More Premium
Installing fancy or expensive gadgets in your car for luxury & entertainment purpose will eventually increase your car insurance premium. The reason behind this is that these gadgets will increase the value of your car. That means you will have to pay more for repairing them. Ultimately, the premium for your car insurance policy will be higher. No auto insurance company will tell you this reason for the increased insurance premium. But it is one of the main reasons. So, if you want to save on your car insurance premium then you can avoid installing fancy gadgets in your car.
Your Agent Knows that Certain Types of Claims Will be Rejected
While agents are not claim adjuster, they already know that your auto insurance policy has a few exclusions for certain actions of policyholders. For instance, damaged caused to your car while you are road racing, and damage caused due to wear and tear will not be covered under your insurance policy.
Your agent also knows that you won’t get reimbursed for personal belongings stolen out of your car. The theft of your car is covered under the comprehensive policy but it doesn’t cover the theft of the personal belongings such as phone, laptop etc.
Your Agents Knows What You Can Do to Lower Your Premium
Besides offering you an apt car insurance policy, your agent knows about various ways of saving on your car insurance premium. Car insurance discounts are not always highlighted on the insurance company’s website but agents know very well that what discount the company is offering. Your agent can let you know about the discounted offer to lower your premium. In addition to this, your agent can also tell you what safety features on your vehicle can give you a discount.
Agents won’t always reveal this information unless asked. So, don’t forget to ask about additional discounts and offers while buying a car insurance policy. This can actually help you to lower your premium.
The Bottom Line
These are just a few things that insurance companies try to hide in order to make money. So, make sure at the time of purchasing a new insurance policy for your vehicle, you compare car insurance policies.
And if you are looking for an online car insurance Dubai then make sure you go through all the terms and conditions so that you can avail all the benefits you are expecting for at the time of making a claim.