6 Things You Should Know About Your Auto Policy

1.  Comprehensive coverage doesn’t mean complete coverage
The common misconception of comprehensive coverage is that it covers you in every situation.  However, this is certainly not the case.  Comprehensive coverage simply means you are covered in scenarios other than collisions.  Losses such as theft, flooding, vandalism, tree damage, and fire are common examples of when comprehensive coverage will help you.

2.  Your car affects your rate
The type of car you drive greatly affects what you will have to pay to get your car insured.  If you have a fast, sporty car, you will probably find yourself paying a higher premium.  On the contrary, if you are driving a car with safety features, your rates may be significantly lower.  Many insurance companies are also going green, offering a discount for hybrid cars.  

3.  The higher your deductible the better
If you believe you are a good driver, a high deductible may be a good choice for you.  A deductible is what you have to pay out of pocket in case of an accident before the auto insurance kicks in. It’s best to choose the highest deductible you believe you can afford at any given time.  Doing so will greatly reduce your premium.

4.  Letting your policy lapse can be costly
 When an insurance company sees that someone has been driving without auto insurance, it is required by state law, that you be considered irresponsible.  Consequently, insurance companies will often make you pay for it. 

5.  Electronic payments
Many insurance companies offer discounts for being e-customers.   This will help avoid extra fees such as monthly service charges and postage.   

6.  Packaging your policies
 Discounts, saving you 15-20⁺ % are available when you package your home and auto policies with one company.