Definitions of Terms
The Declarations Page (DEC) shows you who is insured, what automobiles are covered on the policy and what coverages are applicable to each auto.
The Policy explains the terms and conditions of your coverage. If ID cards are required in your state, keep them in the automobile at all times.
Endorsements are changes that modify the Policy or the Declarations Page and should be kept with your policy at all times. Read also: Choosing The Coverage Amounts And Proper Deductibles.
Flexible Payment Plans
Most insurance companies offer a large variety of payment plans and options. Many policies are billed in 6-month periods and full payment upon receipt will help you to avoid any fees that will be charged for more frequent billing.
Payments can be made monthly or bi-monthly and charges will be incurred accordingly. It is best to avoid paying additional fees if possible but, if your budget prohibits you from making one large payment, then these options are available to assist you.
Payments can be made by check, telephone, or online. As long as your payments are received on time, there will be no problem. It would be a mistake to pay your insurance premiums late as your policy could be cancelled within a certain period of time and you would be driving without coverage. Read also: About Auto Insurance.
Another option for payment is monthly Electronic Funds Transfer (EFT). Your policy premium would be divided into equal payments and the payment is withdrawn monthly from either a checking or savings account designated by you. The withdrawals will be made on a date you specify and there are no extra fees for this service. If you are comfortable with this system, it would be a good way to budget your money and still not have to pay extra for the convenience.
Insurance Companies Working to Hold Down Costs
Insurance companies work hard to keep their costs low so that their product will remain affordable. They promote safety initiatives by offering discounts for air bags and special driving programs, in an attempt to prevent or reduce accidents and keep the costs of claims lower.
By actively investigating fraud and prosecuting those who commit it, they are helping to maintain the lower premiums. The American Insurance Association (AIA) supports legislative initiatives that will assist them in holding down costs and they lobby at many state capitols to enforce stricter penalties for dangerous driving and insurance fraud. Read also: Two cheap auto insurance tips to follow.