When it comes to buying car insurance, many car owners aren't all that familiar with the ins and outs. They will often just buy the minimum car insurance required by the state, or go with a more comprehensive car insurance package and call it a day. Here, Major Insurance discusses five lesser-known facts that can benefit you greatly when choosing a car insurance policy:
You May be Able to Stack Policies
If you own several vehicles, then one way to save money is by stacking coverage for bodily injuries that involve motorists who are either underinsured or completely uninsured. Basically, your payment limits will be increased if an accident occurs involving a motorist without insurance or one who is underinsured. You'll have to check with your state laws, however, as some states do not allow this practice.
Theft of Personal Items is Not Covered
You may think that if your policy covers the theft of your car, that it would also cover the theft of the possessions inside of your car. However, this is not the case. The only way to cover the possessions left in your car from theft is by purchasing additional coverage on your homeowner's insurance policy.
If You Cancel Your Policy, Do It in Writing
Most car insurance providers will require a formal cancellation in writing. If you cancel over the phone without sending in a written cancellation notice, your policy may still be renewed automatically. Your premiums will continue to be taken from your account if you have set it to be withdrawn automatically. If you simply stop paying without supplying a formal cancellation request, then you may be reported to a credit rating agency for nonpayment.
You May be Able to Write Off Your Car Insurance Premiums as a Tax Deduction
If you are using your vehicle for business purposes, then the insurance premiums you are paying on it can be claimed as tax deductions. You will have to establish how you use your car for business, and what percentage of the time it is used for business vs. personal use. For example, if you use your car for business purposes 50 percent of the time, you can only deduct 50 percent of your car insurance premium on your taxes.
You May Qualify for a Discount Depending on Your Profession
Many insurance companies provide discounts to teachers, military personnel and engineers. You'll be required to provide proof of one of these occupations in order to receive a discount on your insurance premiums.
These 5 facts detailed by Major Insurance are critical when it comes to your car insurance policy. Keep these in mind and talk to your insurance agent in order to potentially save money, whether you are in the process of buying a policy or canceling one.