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Insurance Tips
10 Steps to Buying Auto Insurance
Step 9: Review the Policy Before You Sign
From Edmunds.com
So, you've done your research, and you've decided on a company. Before you
sign, though, read the policy. In addition to verifying that it contains the
coverage you want, there are two clauses that you should look for in the contract:
- Retain your right to sue. "Find out if you are giving
up your right to go to court and will be forced into arbitration if there is
a disagreement [between you and the insurance company]," one expert advised. "You're
much better off if you don't give up this right…. It makes it easier for [insurers]
to take advantage of you." If you find a clause to this effect, all isn't necessarily
lost. "At least in theory, a contract is a mutual agreement, so you should
be able to cross out that line in the policy," he said. If the company won't
agree to the policy sans clause, then you should probably take your business
elsewhere.
- Avoid aftermarket parts requirements. If an insurance
company has written in the policy that "new factory," "like kind and quality" or "aftermarket
parts" may be used for body shop repairs, go to another company, one expert
advised. If you own a relatively new car that you plan to keep for a while,
you will probably be much happier if you spend a little more time researching
companies on the front end rather than try to fight the company when you have
a claim.
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