How Auto Insurance Works

​Whether you recently bought a new car or are shopping for one, getting auto insurance should still be on top of your priorities. In this article, we will explain the basics of how auto insurance works after and before you apply.  

Before applying: how can I save on my insurance?

• Change Your Deductible. If you raise your deductible from $700 to $1200, there are high chances that you can save around 10% of your overall insurance fee. Insurance tends to offer lower premiums once you agree on paying higher repair costs right after an accident. 
• Discounts are important. There are several discounts offered by customers, and one typical example is bundling. For example, you have a business that runs multiple vehicles, insuring all the cars in one bundle will have you pay at a lower rate. 

During claiming: why do claims get denied?
Here are the top three reasons why claims usually get denied:

• The driver who uses your car is not included in the policy. 
• It is not the business car but your personal vehicle that was used, although it's for business purposes, during the accident.
• The car is not in your home but on someone else's address.
• The damage was self-inflicted. This might includes damages at the track while off-roading.
• Worn-outs cause damage. The damage may include seals, brakes, and other auto parts.    

After applying: what happens to my insurance after a claim? 

Several factors greatly affect your insurance after a claim. Here are some of them:

• Speeding tickets and record counts drastically change your insurance after you have made a claim. 
• You drove with the influence of alcohol and received a ticket for it.  

Changes include increasing your rates much higher than before. Insurers thought that they are at stake when you are driving carelessly. Hence, the risks of losing their money for your repair is also high. For some, they can also terminate your insurance.

• A car crash can also change your insurance. If it is proven that it's not your fault, your rates will not change. However, in no-fault states, your insurer will still be covering the car damages above your deductibles. In this case, it is more likely that your rate will also increase.  

At American Eagle Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (225) 667-7377. Get your free quote today by CLICKING HERE.