In California, and most other states it is a requirement to take out car insurance. Most people get insurance because they know it is required and pay little attention to what they are actually getting when they sign up, they are only concerned with satisfying the requirements of the law. Most do not fully understand their policy until they attempt to file a claim. This is when people sometimes find out what problems they may have with their policy. Here are some common problems that people run into with their car insurance, and some ways to avoid them.
It may seem like a waste of time but it is highly advisable to fully understand what you are buying in order to get the best deal. One of the easiest things to be aware of is the deductible. For those who may not already know, a deductible is the money you must pay when making a claim. The lower the deductible, the higher the monthly premium, and vice versa. This is how some insurance carriers can offer such low premiums, the catch is, if you file a claim you may have to come up with larger amount up front.
Filing a claim is an area where some people encounter problems. Some expect it to be a simple process, and it is anything but. One way to make it an easier process is to file the claim as soon as you can. The longer you wait, the greater the likelihood of difficulties. Contacting the insurance company should be done immediately along with other essential tasks like the police report.
Getting back to understanding your policy. Take the time to read through what your policy covers so that there are no nasty surprises if the time comes that you need to file a claim.
Contact your agent and find out all there is to know about your insurance policy.