According to a survey done in 2010 by the NAIC (National Association of Insurance Commissioners), over 50% of Americans do not know the basic facts of auto insurance and slightly less are confident in their insurance decisions. Below is a short list of things many people do not know about their Car Insurance in Santa Maria.
The Vehicle is Covered, but the Contents Aren’t
Over 2000 auto burglaries occur each day in the US, according to the FBI. While many assume that losses are covered, that is not always the case. Most comprehensive policies cover damage sustained during the theft, but do not cover the value of stolen items. Stock vehicle parts are included, but a CPE (custom parts and equipment) rider should cover customizations and add-ons. Belongings such as cell phones, laptops and GPS units may be covered under homeowner’s or renter’s insurance, and customers should review their policy documents to confirm coverage.
Car Color Does Not Affect Insurance Premiums
If a person is putting off buying that shiny red Corvette they’ve had their eye on because they heard that red cars cost more to insure, they should wait no longer. The notion that certain car colors drive up the cost of insurance are little more than an urban legend. Insurers do not care about the car’s color, but they do consider the vehicle’s age, body style, engine size and safety record.
Credit History Does Affect Premiums
Insurers such as Coastautoinsurance.com often consider a driver’s credit score when the customer wants to renew, change or buy an insurance policy. Insurance scores are a measure of how well a person manages his or her finances, and not an indicator of wealth. Some factors considered are:
* The length of the person’s credit history
* The number of credit accounts in good standing and in collection
* Debt-to-credit ratio
* Number of recent credit applications
While a low credit score might result in higher premiums, it should not prevent a person from obtaining coverage. An insurance agent can help the customer understand their insurance score and learn how to improve it.
Collision and comprehensive insurance are optional. While lenders may require a borrower to buy such coverage, those with older vehicles often do not need it. Skipping these coverage types may make sense for some, but it may leave others lacking protection. By learning more about Car Insurance in Santa Maria, customers can ensure that their policies meet their needs.
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