Auto Insurance Tips Before And After Collision Damages

Are you getting a good deal on car insurance? Do your premiums increase dramatically each year? There are secrets within the auto insurance industry that you need to know. Here are some tips to help you save money:
Good Credit for Lower Premiums
There are many factors that go into calculating you insurance risk score; your credit score is one of them. Your insurance risk score is how your premium rate is determined. Most auto insurance companies will pull your credit report and offer a discount for good credit. The reason is if studies have shown that people with good credit are less likely to file claims. People who have long-term credit accounts and those who pay bills on time are generally more responsible and more stable than those who pay late or frequently open and close accounts.
Paying in Full versus Installments
Most insurance companies offer a discount if you pay your premium in full or they will tack on additional fees if they break up you premium into monthly installments. Ask your insurance agent about fees for paying the premium in installments. You might be better off paying the entire premium up front to save money.
The Rating on Different Car Models
All cars are given a rating; the higher the number, the higher your insurance premium will be. The cost of the car, safety and likelihood of theft are some of the factors used in rating the vehicle. A sports car or convertible will cost more to insure than a family sedan because of they way they are typically driven. Search online for the latest top 10 lists of the most expensive cars to insure or check with MSN Moneys comparison tool.
Bad Drivers pay Higher Premiums
Insurance companies typically increase your premium dramatically if you are determined to be at fault in an accident or if you get a ticket. If your rates are increased because of bad driving it usually takes 3 5 years for your rates to go back to normal. On the other hand, some insurance companies will reduce your rates if you have no moving violations or accidents resulting in filing a claim.
Who Else Drives your Car?
If a friend borrows your car and gets into an accident you will have to file a claim and pay any deductible that applies and your insurance premium will likely increase. If your friend is uninsured and causes damage that exceeds your policy limits then you could be held liable by the injured party. Allowing others to drive your car can be very risky.
Adding Teenagers to your Policy
You must tell your insurance company when your teenager has become a licensed driver. If you fail to report this and your teen is in an accident where you have to file a claim, your insurance company can charge you back premiums due from the date your teen received their license.

Your Cars Value
Your insurance company has its own system of determining value if you total your car in an accident. They dont use the standard Kelley Blue Book values; each company has its own list of car values or special software. There are several things you can do if you disagree with your insurance companys opinion of value.
Insurers take into consideration mileage and condition of the vehicle before the accident when determining value. If you keep good records that show you have properly maintained your car with regular oil changes and routine mechanical check-ups, then present this evidence to your insurance company. If you have special parts or upgrades on your car be sure to show this to your agent as well.
Shop around for quotes on replacement cars of the same make and model from several dealers within a reasonable distance from your home. Insurance companies will often get quotes from out of town dealerships if it can save them money. Prices on vehicles in suburban areas may be less than those charged in the city. In many cases, insurance companies are quoted lower prices than you would be given if you walked onto the car lot yourself.
You can take the issue to court or go through a mediation or arbitration process if you are not satisfied with the insurance companys valuation of your vehicle.
Of course, you can avoid this hassle by getting gap insurance. Gap insurance coverage pays the difference between what an insurer will cover and what you owe which can be thousands of dollars.
Claim for Diminished Value
If you have been in an accident and had your vehicle repaired, its value may be diminished. Some states allow you to file a claim with your insurance company for the lost value. If you were not at fault you can file a claim against the insurance company of the driver who was at fault.
Sales Tax on a Replacement Car
Some states require auto insurers to pay the sales tax when you purchase a replacement vehicle if yours it totaled. This includes both new and used cars. Do not expect your insurance company to pay upfront; you might have to request it. Many insurance companies will pay the sales tax even in states that do not require it because your policy requires them to return you to where you were before the accident.
This information is provided by Charlie Jones, owner of Collision on Wheels, a mobile auto body shop that comes to you to provide collision repair, dent repair and scratch repair on vehicles. They are also equipped with everything they need to repaint your car for a perfect color match. Visit http://www.collisiononwheels.com to learn more.