Top Factors That Affect Car Insurance Rates (Part Two)

Top Factors That Affect Car Insurance Rates (Part Two)In our last post, we discussed a few of the top hidden factors that can contribute to Increased Premium Rates. Although any uncertainties should be directed to your local agent, here are another five common scenarios that should be avoided to evade increased insurance rates and even a cancelation of your Champaign IL Auto Insurance policy.

Selling your Car but Carrying the Insurance- Keeping your name on the title of the vehicle still holds you liable for any accidents caused by a new owner if you fail to switch the ownership. Further, your insurance policy typically only covers drivers in your household. In the event of an accident, the coverage you pay for wouldn’t be valid.

Using your Personal Insurance for Business- Whether you’re delivering pizzas or newspapers, personal car insurance policies typically do not cover accidents that occur while using your vehicle for business. Property Casualty 360 suggests that if your job entails driving, consider a business-use or commercial car insurance policy instead.

Allowing “Excluded Drivers” to Drive your Vehicle- If a named driver is specifically excluded from your policy, your carrier will not provide coverage as a result from their actions. This means that if that person caused an accident while driving your vehicle, even in an emergency, you will be financially liable for the damages.

Not Insuring a New Car Right Away- Depending on your coverage, your existing policy will typically carry over to your new vehicle for a period of 14-30 days. During this window, your insurance carrier needs to be notified in order to properly insure and protect your new vehicle. However, double check before driving your new car off the lot as some companies don’t allow any automatic coverage grace periods!

Not Informing Insurance of Other Consistent Drivers- This includes a significant other or a spouse who regularly drives your car. Insurance companies need to know when you move in with someone or are recently married. If they cause an accident, there is a chance your insurance company can deny the claims, forcing you to pay out of pocket for the damages.

At Myers Insurance Group, we specialize in personal and business auto insurance. For more information on how to properly insure your vehicle in any circumstance, contact our specialists today at (855) 534-5707.

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