Do you think that you know everything about your auto insurance company? If so, you are wrong. There are many details that you are not aware of. And the fact of the matter is that these details can be quite important.
Here are three things that you may not know about your auto insurance company.
1. When an auto insurance company is providing you with a rate they are not always looking at your past driving record. Sure, this plays into things a bit, but this is not the only detail that they are taking into consideration. One thing that your auto insurance company will look at is your credit. They figure that people with great credit will pay on time, and that they are also less likely to file a claim. Is this true? In some cases, yes. But even if this is not the entire truth, it is the way that the auto insurance industry works.
2. Every auto insurance company has their own way of evaluating you as a driver. Some companies will look at your past driving record and base their decision entirely on that. But in other cases, there are companies that have their own system that does not rely solely on what you did in the past. This is why comparison shopping is so important.
3. Auto insurance companies will adjust your premium based on the type of car that you drive. For example, a high powered sports car will be much more expensive to insure. The reason for this is that your auto insurance company believes that people who can drive fast will drive fast. In addition, SUV’s are also more expensive to insure because in an accident they are shown to cause more damage than other cars.
Make sure that you keep these three things in mind when you are shopping for auto insurance.
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