Car Insurance Dos and Don'ts

Once You've Picked Your Coverage...

Car Insurance, much like your car itself, requires regular maintenance in order to stay in top shape and best able to protect you in the event of an accident or mishap. The following six items list some things to do and NOT do over the course of your policy to make sure your insurance coverage is always in the best position to help you.

DO

• Check & update your policy regularly. If you move it is important to update your policy provider with your new address. Not only is this important to make sure they can contact you if needed, but your new address may affect your rates. Additionally, check out our car insurance glossary if you do not understand all of the lingo.
• Save up for your deductible. After an accident or problem, the #1 issue car owners have and get frustrated by is the sudden rise of their need to pay $250, $500 or even $1,000 of an agreed deductible before their car can be repaired or replaced. Whatever deductible amount you set with your provider, you should start saving it up right now and put it in an interest-bearing account and forget about it until the time comes when you need it.
• Volunteer your information without argument after an accident. Even if you think the accident wasn't your fault, the other driver has a right to collect your information as well as you getting theirs. Whose insurance company will end up paying is for the police report and the insurance underwriters to decide, not you, not then, not right after an accident. Giving over your information does not automatically mean your insurance will be affected when the accident is reported.

DON'T

• Neglect to report an accident. Thinking that you can get away without reporting an accident on your insurance is usually a huge mistake. It opens you up for retroactive cancellation of your policy so that you will NOT be covered if you ever end up really needing your insurance.
• Forget to put your insurance card in your car. That is an offense that you can get a ticket for. Most times, the ticket will be dismissed once you come to court and provide proof that you had coverage at the time, but it's best to not have to worry about doing that.
• Forget to make your premium payments Insurance cancellation is a very steep and irritating issue to overcome. Even if you are just going back to the same company after a week or two of inactivity, there are certain regulations that can make the process of getting reinsured a hassle. Not to mention the fees that the insurance company will probably tack on. If you no longer want to be with your insurance company, make sure you work with your new provider to transition your coverage with a zero gap in coverage.