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Small auto insurance secrets that can make a big difference

Auto insurance means a lot if you drive a lot and want to be sure that their car is covered against any damage or loss. And once you get auto insurance quotes and purchase an auto insurance policy you tend to think that it was money well spent. That's what most people think and they are certainly right. Yet, even if your policy is costly and has different coverage types included there may be certain situations when you will learn some unknown and very unpleasant details about your policy. In order to save your time and money, here's a short overview of specific and not so well known issues regarding auto insurance that you should really know about.

Mind the gap

There's a particular type of auto insurance coverage that a lot of people tend to overlook even when stuffing up their policies with other coverage options. Yet, gap coverage may be the coverage you'll really need when buying a new car. To put things simple, gap insurance deals with the depreciation the vehicle faces when driving of the lot after you've purchased it. Even if you happen to get into a crash the very day you've bought the car your insurance coverage will pay only for a portion of the value of the car and you'll have to settle the difference with your auto loan out of own pocket. Gap coverage pays this difference and is very useful when financing a car.

Repair parts can be different

Under auto insurance there are two types of repair parts you can get. The first one are the parts from the actual manufacturer and are called OEM parts. The other one is the "aftermarket", which refers to all other third party equipment no matter old or new. And it's really important to understand what type of repair parts your policy will pay for before actually going to the repair shop. Because you may pay for OEM parts and discover that your policy will only cover aftermarket parts, which usually cost less. So it's best to check the details when you're reviewing auto insurance quotes.

Deductibles are not the same

As you know deductible is the amount of money you have to pay before the coverage kicks in. And you can adjust its amount. Yet, the thing that a lot of people tend to overlook is the fact that their policy can carry different deductibles for different coverage types. And if the deductibles are not the same it can give you a bit of a headache when you realize that your comprehensive coverage won't kick in because the deductible for this coverage is higher than for third party liability.

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