When comparing car insurance here are seven tips regarding small policy details that might appear insignificant at first, but can have a whopping impact on the final cost of your policy and any claims you will hopefully never have to make.

1-Alternative dispute resolution

In cases where arbitration or mediation is required in order to settle a dispute, companies routinely mandate these cases. Be sure to inquire what legal rights you may be giving up by agreeing to this when signing.

2-Car and driver

An obvious but often overlooked way to save on car insurance is to only have those people who use the car on the policy. For example; if your teen is living away from home and won’t be using the car for a large part of the year or if they get their own car insurance you should remove them from your policy. But if you do have a teen, shop around and make sure you’re getting the best deal because some insurance companies treat teens differently.

3-Credit history

Some auto insurance companies have found that there is correlation between bad credit and claims filed. If you have bad credit, shop around for a company that doesn’t take into account your less than good credit score.

4-Gap insurance

The Gap Insurance covers the difference between what you owe and what your car is worth when it is purchased or leased with no money down. In the case of a serious accident where the repairs outweigh the value of the car, the insurance might cut you a check for what the car is worth even if you still owe more than what the car is worth. Now that could really come in handy!

5-Loss of coverage

This is your rental coverage. How much will you get per day and for how long while your car is being repaired? This coverage is optional, but can be a lifesaver if you desperately need a car during such a time. We advise you to look into it closely; sometimes it is more advantage to get this coverage through a road side assistance program than through your regular car insurance policy.

6-Repairs

In the event of an accident this minor detail can either end up saving you money or costing you a lot. Investigate how various insurance companies handle repairs. Do they let you choose where you can get your car fixed, or have a list of shops from which to choose? Do you have the choice between brand-name parts or after-market parts and if there’s a price difference, who covers it, you or them? Is there a warranty on after-market parts? Don’t wait until something happens to find out.

7- Umbrella policy

Depending on what assets you have to protect this can be a vital policy to help you keep you house and investments in the case of a very expensive liability suit due to serious property damage and injury to another person. For a few extra hundred dollars a year the umbrella policy takes over once your auto insurance is maxed out, keeping your assets safe.

One last little detail before ending; if your shopping for a new car and have a few in mind why don’t you get an insurance agent to see which one would be the least expensive to insure. Remember having side airbags and installing an anti-theft device also diminishes your final policy cost.