10 Things Your Auto Insurance Company Won't Tell You

• "When I say this is a good policy I mean it is good for me" - Some insurance company agents get contingent commissions depending on what they can sell you while other agents get commission from avoiding costly claims from being filed.
  
• "Young drivers can't catch a break" - Most drivers under the age of 25 pay almost 100% of what 60 to 74 year olds pay. Some insurance companies will give drivers a discount if they complete a defensive driver course but the discount still doesn't compare to the 25+ year old class of drivers.
  
• "Spotty credit. That'll cost you" - Since the 1990's credit has had an impact on most insurers policy quotes. Bad credit equals a more expensive policy or no policy at all through some insurance companies.
  
• "How do we set premiums? That's for us to know and you to find out" - Premiums can vary by state, by age, by company and even individual insurance companies usually have their own set of complex systems to determine premiums.
• "Your car might look and run like new but it will be worth a lot less" - Some car insurance companies prefer to fix cars rather than total them even if the amount of repairs is the same amount as the worth of the car. The thing the insurance company does not like to tell you though is that even if the car can be repaired 100% it will still be worth thousands and thousands of dollars less than before the accident.
  
• "Totaled your car? Good luck collecting your full value" - Most insurance companies do not use Kelley Blue Book or Edmunds Car Value to determine how much the insured should receive if their car is totaled. They use their own systems that may leave you way below your car's value.
• "And we're more likely than ever to declare your car totaled" - Your insurance company has a set percentage as to what constitutes a car as totaled. If a car's damages meets that percentage it is up to the insurance company to total the car or not. The insurance company usually is the one who ultimately decides what will occur based off of what is best for their company.
• "Your mechanic works for us" - Many auto insurance companies either own certain auto body shops or have "approve facilities" in your area. While these "approved shops" or insurance company owned shops do have perks sometimes such as reduced decutables or other perks it is important to weigh the positives and negatives prior to making that decision though. Just keep in mind that if you have a problem with an approved facility the facility is connected to the insurance company which can either be a good or bad thing depending on the situation.
• "Brand loyalty is for suckers" - Premiums and discounts can change every year and can be dependant upon each individual insurance company. Instead of automatically renewing your policy every year through the same insurance company it may be worth it to shop around once a year close to the end of your renewal date to make sure you are still getting the best deal.
  
• "But be careful switching carriers - it could cost you" - If you decide to switch carriers it is important to understand that some insurance companies make you pay the month following the cancelling of your insurance policy. Not paying the final premium or not paying it on time can cause the information of a lack of payment to be reported to the credit bureau.