Things your auto insurance agent may not be telling you

Many a salesman has kept quiet about something in order to clinch a deal. Nobody lied to you about anything, but some things were just left unsaid. Unfortunately, these things may have influenced your decision, making it your right to know. Here are a few things not frequently mentioned by auto insurance agents:

1. Your credit score has an effect on your premium. If you have a bad credit rating, you are considered a higher risk in general, and you will pay for it.

2. The value of your vehicle is not the deciding factor that determines your premium. The likelihood (according to statistics) that your car can be stolen, or be involved in an accident, as well as any safety devices (or lack thereof) will influence the calculation.

3. After having been involved in an accident, you vehicle diminishes in value. In fourteen states, you are allowed to claim compensation from the insurance company for the loss.

4. If your car was totaled in an accident, you are not simply compensated according to market value. Firstly, the physical condition and mileage is taken into account, and then a search is done to find the lowest replacement quote in the area. That’s what you get paid.

5. IN twenty eight states the insurance company is responsible for paying the sales tax on a replacement vehicle if yours is totaled.

These are things nobody wants to talk about, especially during a sales pitch. Most people find out the hard way, but by that time nothing can be done about it. The only way to get all the details is to learn as much as you can, and compile a list of questions for the next salesman. The next time you have to make a choice, you will be much better prepared, and capable of making a better choice.

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