Once a valid auto insurance policy has been purchased, there are still a number of issues that can arise which all road users should be aware of…
10 – Teenage Drivers
In the overwhelming majority of cases, an auto insurance company will not expect you to register a young driver onto your existing auto insurance policy until a license has been acquired. However, road users in high-risk groups will have to register their teenage drivers as soon as a permit to drive has been received.
Although young drivers will still be covered in the event of an accident, an auto insurance company may expect you to make back payments for the entire period that a license has been in place. There is no obligation to add a young driver to an auto insurance policy just because they have reached driving age.
11 – Installments Increase Premiums
If you are paying for your auto insurance coverage in monthly installments, the chances are that you’re already being charged interest on your payments. By paying for auto insurance coverage in a single lump sum, road users can make significant savings on a policy over the full validation period.
12 – Changing Models
The attraction of a new vehicle may be great for your ego but what sort of effect will it have on auto insurance rates? Some vehicles are seen as being a higher risk than others and most auto insurance companies issue every model with a Vehicle Series Rating. Auto insurance rates will fluctuate based on potential repair costs, the likelihood of theft and the number of previous accidents where the same type of vehicle has been involved.