5 secrets your insurance company won’t tell you

Editor's note: This post was originally published on April 22, 2016 and has been updated for accuracy and relevance.

We all need car insurance. It is, after all, the law but not everything about car insurance, and your policy in particular, are as straight forward as it could be. Getting, keeping, and utilizing car insurance can be tricky. Being armed with as much information as possible is key to making sure you don’t pay more than you need, or pay for something completely unnecessary. That is why we at Medines Collision Center have compiled 5 secrets your insurance company won’t tell you.

Where you live and what you do for a living have almost as much to do with your premium as your driving record.

Naturally, if you have been in accidents before, your premium will rise dramatically. But, if you have a clean driving record, there can still be circumstances that cause your rates to jump. What state and city you live in has a direct impact on your insurance premium. So does what’s on the next block. Did you know that living near a Church is better for your car insurance than living near a restaurant? Also, studies of different occupations show a statistical relationship between you job and your risk as an insurance customer. Naturally, these studies revolve around the stress level of the job, and the amount of time spent on the road.

Not paying annually can lead to hidden fees.

Not all policies do this, but you may want to double check yours to make sure you aren’t getting hit with something unexpected. Most policies allow for monthly payments to be made on the annual premium instead of paying it in one lump sum. But, some of those policies implement an installment fee or a fractional fee. This amounts to simply charging you extra for the convenience of not having to pay all at once. The insurance companies have a legitimate reason for doing this, as in the past, people have signed up for insurance and then purposely not kept up with their payments. Why would they do this? They won’t be up to date if they’re in an accident, but if they go through an insurance check point, they’ll be able to show the officer a card that says they’re covered.

Your personal items may not be covered.

This is one that takes a lot of people by surprise. If you leave valuables in your car and someone smashes a window to steal those valuables; your window may be covered, but your valuables are most certainly not. Similarly, items that are damaged in your vehicle aren’t necessarily covered by your car insurance either. Read your policy very carefully. If you don't see any sort of protection for your belongings, ask your agent about adding protection. If you car insurance policy can't add the belongings, some homeowner’s policies offer this protection. If you regularly have to travel with valuable or delicate items, you may want to look into attaching a rider to your homeowner’s policy to make sure you aren’t stuck if something unforeseen should happen.

Do not insure unlicensed drivers. 

This may seem like a no-brainer, but it catches the parents of teenagers off guard more often than you would think. Though Louisiana isn’t one of them, a number of states require that a teen with a learner’s permit be insured. This doesn’t stop most insurance companies from offering coverage, and it sure won’t stop them from accepting if you ask. The reason this is a problem is twofold. First, premiums for teenagers are ridiculously high; and even higher for learner’s permits. Secondly, once your teen is on your policy, it’s tougher to change that policy from learner’s permit to license.

You are in control. This is our mantra at Medines, because it is the single most important thing everyone needs to know when dealing with insurance companies. If you are in an accident, you will be given instructions on everything from where to take your car, how much the insurance company is willing to pay, to whether or not they want to total the vehicle. Know going in that these are not instructions, but rather, they are offers. You have the right to reject what they offer you without fear of being left holding the bag for repairs, your rental car while your car is being repaired, and any other expenses incurred as a result of the accident. Insurance companies will often act and react from a position of strength. Once you learn the secret that you are in control, the strength in negotiating and making yourself whole after an accident becomes yours.