5 Important Auto Insurance Facts No One Ever Told You About

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Understanding your auto insurance rates isn’t always easy, especially when things like your credit can come into play. There are some things that can affect auto insurance rates that you never could have imagined!

Here are five auto insurance facts you probably never knew that you probably should.

The Cost of Brand Loyalty

You might think your current auto insurance provider is your favorite, and you might really like your insurance agent, but the simple truth is that it might cost you in the long run.

It is always smart to shop for new auto quotes each year to see which might give you the most bang for your buck. There are so many options available nowadays and you might as well take advantage of the ease of internet shopping.

How Your Credit Impacts Auto Insurance

There are certain credit characteristics that auto insurance companies take note of that can affect whether an individual might have an insurance claim.

Other variables include average miles driven, where you live, your driving record, claims history, age and the type of car that you drive.

Your Auto Insurance Can Be Canceled

If you’re found in violation of any guidelines listed in your auto insurance policy, your insurance company can cancel the policy at any time. The same is true for renewals, as they can decide not to renew your policy.

Some reasons for doing so can include not paying your premiums on time, submitting too many at-fault claims, losing your driver’s license thanks to revocation or suspension, past insurance claims or misrepresenting your driving history.

You’ll Pay for Stopping Any Payments

You might think you can easily switch to a new auto insurance company by stopping the payments with your current insurer, but you might end up paying more in the long run.

Your cancel will eventually terminate thanks to nonpayment, but they, in turn, can also report you to credit agencies for nonpayment, which will lower your credit score.

Also, having a cancellation on your record could cause other insurance providers to charge higher premiums or decline your application.

Paying Your Premium in Full Can Save Money

Did you know that by not paying your insurance premium in full, it allows insurance companies to charge an administration fee to break up the payments? The more payments you have, the more you’ll be hit with these small fees that can really add up over time.

There might also be additional charges for doing so, including having the ability to pay-by-phone or for the method of installment payment that you choose.