words Al Woods
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According to Statista, the USA had approximately 276 million registered vehicles in 2020. With so many people having car insurance, you think most people know everything there is to know about insurance.
The truth is most people only pay for insurance without paying much attention to the fine details of their cover. A lack of awareness about your insurance policy could mean paying more than you should.
This post looks at some surprising facts about insurance that you may not know.
1. You’re Probably Paying More
Most people don’t give much thought to the cost of premiums. If you are among this group, you could be paying much more than you should. People pay high premiums for staying with their old insurer, thinking they offer the best deals.
You could be surprised at how much you could be losing out on excellent deals for not looking out for better deals. The most effective way of shopping for an insurer would be by comparing different insurers using a reliable online cheap insurance comparison resource that guarantees access to the best deals for the best price.
For example, if you drive daily, but don’t actually have a car, you could be paying unnecessarily high rates for insurance. By switching to a usage-based or pay-as-you-go policy, you could save significantly on premiums. People are also looking for the best non owner SR22 insurance in these situations to ensure they have the proper coverage when driving a friend or family member’s car. Further, simply opting for higher deductibles can also lower your premiums significantly.
2. Comprehensive Insurance Is Not All That Comprehensive
The term comprehensive can be deceiving and make you feel like you have everything covered. Sadly, comprehensive insurance does not cover everything.
Typical comprehensive insurance covers damages resulting from vandalism, theft, fire, flooding, any other damage to your car, and damages suffered by the other driver if you are to blame for the accident.
Unfortunately, you cannot recover damages for your injuries from the accident. So you may want a personal injury protection cover on top of your comprehensive insurance to ensure that you are fully covered.
3. Age and Gender Can Affect Premiums
If you are under 25, you will pay higher premiums than your over 25 counterparts. The reason for the high premiums is that insurers deem younger drivers riskier. In some states, teenage males pay more than their female counterparts.
Also, some states have mature males and females pay different rates in premiums. However, this approach to insurance has been criticized in recent years forcing insurers to take a more gender-neutral approach to insurance.
4. Good Grades Can Help Lower Premiums
If you have a teenager looking to get a car soon, helping them put some effort into their studies can help them earn discounts on premiums. Some insurers look at a student’s performance and school attendance records when determining risk in a teenager. Insurers view performers as less likely to engage in risky activity than their non-performing peers.
If your teen can’t make good grade discounts, you could have them enroll in a defensive driving course. Insurers deem individuals who have undergone a defensive driving course safer than other drivers and thus lower their premiums. A defensive driving course can significantly reduce your insurance cost, even if you are not a teen.
5. Pooling Your Car under One Cover Can Attract Some Discounts
If several household members have cars, pooling them under one policy could earn you discounts. However, the vehicles must be registered under the names of members of the same family. So this option cannot apply to roommates.
Also, there is a limit to the cars you can pool. Often insurers set the limit at five cars. But not all insurers have this option, so you may want to ask your insurance agent if such an option exists. If not, it may be time to get another insurer.
Final Words
The list of surprising things about insurance mentioned in this post may not be exhaustive. However, they offer some insight into some facts that can help you get the most out of your insurance and access cheap coverage.
