6 Things You Should Know About Car Insurance

It is no secret that auto insurance gives you the financial protection you need when it comes to your car. However, many people still just get the minimum amount of coverage needed in order to be legally allowed to drive, but lack of knowledge could be keeping them from making the most out of their coverage and savings! Here are 8 things that you need to know in order to reap the maximum benefits from your car insurance deal.

1. Discounts

Most insurance companies offer auto insurance discounts for things like a safe driving record, car safety features, anti-theft devices, electronic payments, payment in full and more. Make sure you’re getting rewarded for being a safe driver and for having a safe car.

2. The Car’s Contents are Not Covered

Car insurance will only cover items that are considered to be a part of the car. Your company will not give you a payout if your electronics or any other expensive device is stolen from the car or if they were in the car when it was stolen or totaled. Accessories such as a stereo or after market rims may be considered a part of the car by some insurance providers.

3. The Type of Car You Drive Affects Your Premium

Certain institutes record data on the types of cars involved in accidents. Auto insurance providers rely on this data when they are setting their prices for premiums. They do this because if your car is expensive to repair then they want to be certain that they will not be out of pocket when it comes time to pay out. They will charge you less for your premiums if your car has a high safety rating and is easy to repair.

4. Higher Deductibles = Lower Premiums

Insurance companies set their premiums based on how much they might have to pay out. Deductibles are a measure of how much you are personally liable for before you can receive your claim from the insurance company. Insurance companies will charge you lower premiums for higher deductibles so you can choose to have a higher deductible if you would prefer to pay less for your coverage every month. You should only take this option if you are a driver with a safe driving history who rarely makes any claims.

5. Totaled Cars

A totaled car is a car that has been written off after an accident. The cost of fixing a totaled car tends to be higher than the cost of buying a new one and in such cases the insurance company would rather just buy you a new car. If you still owe money on the totaled car, then the cost of repaying off the loan will be deducted from your payout.

6. Insurance Prices Vary From Company to Company

Different insurance companies use different formulas for calculating their premiums. This means that one insurance company could charge you hundreds of dollars for an identical policy that you can get elsewhere. Be sure to shop around before settling on any one specific provider.

SOGO’s insurance specialists can help you navigate all the ins and outs of purchasing the right auto insurance policy.  Give us a call at 210-499-5050 or click HERE to start your online quote request.