There are plenty of things that people assume when they have auto insurance. This can cause a great deal of stress in the future if you find out later that certain things aren't covered or if you find out that certain things should've been covered, but you instead paid out of pocket for. Many people do this because they assume their auto insurance won't cover the costs. Here are four little known facts about auto insurance to know:
- The Belongings in Your Car Aren't Covered: Many people assume that if they are in an accident and some of their expensive belongings, such as a watch, laptop, camera, and more will be covered if they suffered from damages in the accident. However, this actually isn't the case. Your auto insurance will not cover the cost for this. Instead, you need to check with your homeowners insurance to check if they provide coverage for those things. If you often drive with expensive belongings in your car, be sure to check with your homeowners insurance to see that these will be covered in the event of a car accident.
- Cancel Your Old Policy to Avoid Drop in Credit: Whenever you switch car insurance companies, you must be sure that you cancel your old policy. Many people forget to do this believing that the insurance will cancel itself once you have new insurance. However, this is not the case and your old auto insurance company will report your delinquent payments to the credit bureau, which can affect your credit score in a negative way.
- Double Check How Your Vehicle is Listed: The description of your vehicle through your auto insurance company is going to make a big difference when it comes to your rates. This is because if you have a lower mileage on your odometer than what is listed, you are paying more since rates are higher for higher odometer readings. Be sure that the description is right so you are paying the right cost.
- Color Doesn't Matter: Many people believe that the color of their car makes a difference in auto insurance rates, so many people often avoid purchasing red or yellow cars. It's believed that neutral colors, such as gray and black are less to insure. However, this is not the case. It all depends on what type of car you drive. For example, sports car are often more to insure no matter what color they are.
When you know some of these facts about auto insurance, you can be sure that you are making the right decisions when it comes to insuring your car. Contact a business such as LA Insurance for more information.