3 Facts About Car Insurance

For some, paying for car insurance feels like a waste of income. However, you should think of vehicle insurance as a powerful asset. You may not be familiar with exactly how it works, but it is a requirement in many states. We have a few facts to help you gain a better understanding of how your automobile insurance works.
Using Your Car for Work Comes With Costs and Benefits

If you deliver pizza, drive for Uber, commute for work, or conduct any other business with your car, your insurance premiums may go up. Joining a car sharing program may end up with the same consequence. If you opt out of informing your car insurance company about this usage, you might also end up in a bind. They may not cover an accident that occurs while you are on the job. However, because these jobs require so much more time in your vehicle, it is only natural that your premiums go up. The benefit is worth it in the end.  Because you do spend more time driving, the likelihood of encountering an adverse situation is a lot higher. So, while you may pay more, you will also get better coverage for your needs.

What is a Car Insurance Deductible?

Your vehicle insurance deductible refers to the amount that the company requires you to pay for repairs, medical injuries, and damages to the other vehicle after a crash. If you are confident in your safe driving skills, you can ask to pay a higher deductible and bring down your monthly cost. However, the opposite is true. For minimal costs, you can get a lower premium and pay a bit more for your monthly payment. Not only that, if you end up paying your deductible when the other driver was at fault, you may be able to get that money reimbursed depending on the other driver’s insurance.
Your Car Rental May Be Included

If you have full coverage car insurance and you rent a car for personal use, your policy may transfer over to the rental vehicle. This info is extremely helpful when rental companies try and sell you additional insurance that you may not need. You can contact your insurance agent to find out if this is covered in your policy.
Contact Us Today

Car Insurance isn’t nearly as expensive or scary as you may think. One of our agents at Pan American Insurance would be more than happy to explain the details. We are also available to answer any questions about our policies. Contact us today!