Things Car Insurance Companies Won’t Tell You


While you pay insurance premiums and expect your insurer to live up to your expectation when you file a claim, insurance companies generally are more concerned with protecting their bottom line than paying you. That’s why you should never rush into working with an insurance company for the sheer sake.

Even though it is tempting to settle for the cheapest insurance quotes, this decision could prove costly in the long run. The good news is you can prevent this from happening as long as you’re equipped with the correct information. That being said, below are some of the things car insurance companies won’t tell you.

Different Methods Are Used to Value Your Car

When a car is totaled, the insurance company must first value it before paying out your claim. The two commonly relied upon sources for car valuations are Edmunds and Kelly Blue Book. But your insurance company won’t rely on these sources alone. Some choose to use a complex formula to value your car.

Leveraging a combination of formulas gives your insurance company more room to manipulate their value estimate. The good news is you can contest the valuation that the insurer offers you. But to mount an effective challenge, you should take it upon yourself to compare other valuations and value the vehicle yourself.

Your Insurance Claim Can Significantly Bump Up Your Rates

A lot of mystery surrounds how insurance companies set premium rates. It gets more unclear when it comes to how the insurance company decides the increase in your premiums after an accident. Most companies won’t tell you what will happen to your rates after an accident. This tends to deter some drivers from reporting an accident to an insurance company, but it shouldn’t.

Bear in mind you take up a considerable risk when you fail to report an accident since your injuries and damages could later turn out to be worse than initially thought. If you waited and failed to get checked out by a doctor immediately, there is a good chance that your injuries might not be covered.

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