Thursday, November 13, 2008

Avoid The Pitfalls Of Auto Insurance

By Susan Tanner

Getting insurance for a car is compulsory and is required by law. When a person buys a new car he is happy to be the owner of a cherished thing. He goes ahead and buys insurance for his car after checking various options, analyzing them and then reaching a decision. He is on cloud nine thinking that his car is safe and protected and in case of any harm to his car he has his insurance policy to fall back on.

People tend to trust those in business, we follow blindly their directions and commands giving no thought to possible problems! After all, this person is a professional right? This especially applies with auto insurance. We cling to our policy, believing it to be the best without realizing the possible pitfalls.

Many people accept only the basic insurance required by law, not taking any extras. These people will often use the internet to seek out cheap companies, compare rates and go with whomever is the cheapest in town, skipping over the important policy details just to get on with their day, and out on the road.

You must read the fine print when purchasing auto insurance! That great premium you recieve a quote for might be hiding sub standard care in the case of an accident! There is a great chance that the small amount you save on your premium offers much less coverage and hence much less return in the event of a problem.

Insurance companies at times promote their policies highlighting services like road side assistance and free rentals in case of an accident. Many people have found to their dismay that road side assistance provided during accidents is charged and often people end up paying hefty charges for the same. Similarly policies of claims vary across states and if a person has bought insurance in one state and moves to another state then, this will have an impact on his claims in case of an accident or theft. It is crucial to check if there will be any impact on your claim in case of relocation to another state.

Those rental car promises look good in writing, however in many cases these \"free\" cars only apply for the first few days after your accident, leaving you with a pretty steep bill if your car takes longer to repair than they think it should!

To many people, our car is like a second home. We keep many valuable things in there! You may have an expensive stereo, your laptop, maybe even jewelry! Many people have been shocked to discover in the event of auto theft, their insurance only covers the car, forcing them to take a huge loss on any valuables left inside.

In short, always ask questions when looking for new insurance. Make sure you know exactly what's covered under your policy and what benefits are available to you for how long. Read the fine print! It could make thousands of dollars in difference! - 2368

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