Taking Care Of My Car

Three Car Insurance Secrets To Save You Cash

Car insurance is an expense that most people don't enjoy paying. Although car insurance is necessary, it's not smart to pay more than you have to, or not to take advantage of all of the benefits that your car insurance policy does offer. To ensure you get the most out of your car insurance, take a look at these three car insurance secrets that could save you cash.

You Can File a Diminished Value Claim

This one really only comes in handy after you've been in an accident. Your insurance company gives you the cash to repair your car, and you make the repairs. But the result is still a car that is worth less than it was before the accident. Even after being repaired, a car is worth less when it has been in a crash. What most people do not realize is that you can make a claim through your insurance company to collect the difference between the car's previous value and its post-accident value.

This is called a diminished value claim. To file one, you need to call the insurance company of the driver who was at-fault for the accident. Negotiating the claim can be a bit of a hassle, and it may help to have your lawyer call for you. But ultimately, if an appraiser rules that your car is now worth less than before the accident (which is almost always the case), you should receive a pay-out.

A Higher Credit Score Means Lower Rates

When you apply for insurance, they usually ask you questions about your driving record and career. They may not ask about your credit score, but they very often check it! If you have a high credit score, you'll probably be offered a much better insurance rate. So it's worth paying your bills on time and actually using (and paying off) your credit card to boost your score and secure a better rate.

You Might Be Over-Paying If You Over-Estimated Your Driving Habits

When you apply for insurance, they often ask how far you drive in the average year. Many people do not know, so they over-estimate. But if you said you drive 15,000 miles a year and you only drive 10,000, you're probably paying too much for insurance. To more accurately calculate your yearly mileage, keep track of how far you drive in an average 2-week period, and then multiply that number by 26. 

For more tips, contact a company like Chicago Auto Appraisers.