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Auto Insurance Facts – Things You Need to Know

Auto Insurance Facts: 1.  Gap Insurance

Auto insurance facts, let’s start with gap insurance, gap insurance will supplement the difference of what your auto insurance company will not pay out when your vehicle is damaged or totaled.  When you have gap insurance in place at the time of an accident you will be covered for amount owed on your vehicle so you are not left owing money on a vehicle that is damaged or totaled.  Your auto insurance carrier will only pay up to the value of your vehicle, but with the additional coverage that gap insurance offers you will be protected for the full loan amount of your vehicle plus taxes, interests, and depreciation. Gap insurance is deemed as a safeguard against typically excessive out of pocket fees.  Many consumers are not aware of auto insurance facts.

The following instance makes gap insurance particularly compelling: fresh from the dealership just two months back, your car gets hit by a falling tree while parked outside, damaging it severely in the process. Your insurance company, however, quoted your car’s value to be at ¾ of the total amount you owe on the car. The remaining ¼ still costs thousands out-of-pocket.  When you have gap insurance, the policy would pay out the additional expense not covered by your auto insurance policy.  Auto insurance facts like this, help save your family a lot of grief and financial problems when something like this occurs.

Many people would dismiss gap insurance as just another kind of policy that entails them to pay more in the long run. But since accidents happen at random – as in the case above, so does the extra amount that you need to pay outside your car insurance’s coverage. In that case, you would certainly want to consider paying for gap insurance to protect yourself from unwanted gaps in value.  Take the time to read more about Protect My Car’s auto insurance facts, we will continue to post more auto insurance facts over the next few months.

Auto Insurance Facts: Changing Your Insurance Company

Certain instances would heavily compel you to change your insurance company like a move upstate, putting your current car on sale to buy a new one, or sheer dissatisfaction with the current terms. Do note, however, that shifting from one insurance company to another would certainly require you to fulfill certain commitments.  Understanding, Protect My Car’s auto insurance facts will help you make this transition easy.

Sending a written notice of cancellation of your policy is a standard measure a typical insurance company would expect from their clients. In doing so, your insurance company will be well-informed, such that you no longer need to worry about making any more premium payments with the express consent given to you upon sending in your written notice.

However, keep this in mind – there is always a chance that your insurance company won’t make it easy for you to get off the hook even though you sent a written notice.

Your choice to cancel your auto insurance opens the chance for you to be labeled as a high-risk applicant in the eyes of another insurance company. A higher premium might be in the cards on your new auto insurance company, but you can always avoid that through proper timing in cancelling your current policy.

To complete this task correctly, make sure you have read through our auto insurance facts, you need to be sure to schedule your policy cancellation properly during the start of your new car insurance, especially if you plan to use your car continuously in the process. Doing so would enable you to avoid the unfortunate circumstance of incurring severe damage during that brief period when your new car insurance has yet to begin.

Auto Insurance Facts: Using Original Equipment Manufacturer (OEM) vs. Aftermarket

Parts replacement is part and parcel of your car insurance, but being the policy owner, you hold the responsibility of choosing between original equipment manufacturer (OEM) parts or aftermarket parts. In the absence of an informed choice, you’ll most likely rue the consequences of not having the quality you desire for parts replacement – plus the risk of additional payments.  Make sure that you understand the difference after reading this post about auto insurance facts.

One consideration involved in choosing between OEM and aftermarket for parts lies on the coverage your insurance company provides. Note that there are some insurance companies that encourage you to go for aftermarket parts due to lower prices and the fact that they won’t pay in full for OEM parts, while some may just prefer the complete opposite.

In any case, always keep in mind that your car’s well-being is at stake. Managing to get quality aftermarket parts and OEM parts that guarantee quality are both favorable choices. Just make sure to avoid incurring any risk of having to render additional payments. Going for aftermarket quality parts or OEM  is a good start.