5 Things That Affect Auto Insurance You Probably Didn’t Know About


Dominic Alves

Most people are ignorant of just how much insurance companies like to check on your application. It’s just one of those things.

Unfortunately, it isn’t just a case of running the make and model of your car and how old it is through a computer. There is a lot more to it than that. Here are five things that can affect your auto insurance that you probably had no idea about.

They Know Everything

Well, not quite everything. But they will double-check every last thing that you write down on that form. That includes all those questions that you suspected were just for consumer research. They will make a file of your mileage, registration, the people that live with you and a whole lot more. They use this info to give you a credit score, in the same way that a financial institution does.

They Know Their Cars

Car insurers know everything about cars, including how safe they are. Every vehicle made is given an ISO rating based on how they perform in real-life accidents. The higher score your car gets, the higher your premiums are going to be. The worst thing about this is that you will never know what your car’s ISO is. It is strictly used by insurers. You can see the way they grade things in this article over at the New York State Department of Financial Services.

They Are Not On Your Side

OK, so maybe you knew this already, but in case you didn’t, insurers are not on your side if you have to make a claim. Claim handlers will have one eye firmly on their company’s profit margins when dealing with any claim you give. No matter how happy you are with their service, they will always be happier because they have cut their costs down to the bone.

They Give Discounts

You won’t find many special offers on insurance company websites, and if you do they are more likely just to sound like a discount. But they do have them. You might have to meet them halfway by going on a driving safety course or signing up to a paperless bill, but they do exist. If you want to take advantage of auto insurer’s discounts, your best bet is to hire an insurance agent.

They Could Write Off Minor Damage

When you have a little bang and take it into the auto repair and service shop, you could be filled with joy when the mechanic tells you it will be fixed in no time and little money. The trouble is, your insurance company might not see it that way. They keep records of how much value a car is worth to them, not the market value. And this is guaranteed to be much lower than you think. If those minor repairs cost more, they will decide your car is totaled. It’s brutal, but hey: it’s insurance.

Now you have read this, don’t be surprised when the next time you fill out an insurance claim, you will see it with fresh eyes. There’s nothing you can do, unfortunately – lying will invalidate your claim – but at least you will be aware!

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