Most of us look at our car insurance policies once a year - when we're renewing our contracts.
And even then, we rarely take more than a few minutes to make sure our coverages are consistent with our needs.
As a result, there are myriad details included in the fine print that may surprise us.
Some of them may cause expensive problems down the road.
With this in mind, we'll present five facts about your auto insurance policy that may have thus far gone unnoticed.
A few of the following may prompt you to make important changes.
#1 - Submitting A Claim May Raise Your Premiums We'll start with the detail that most people already realize.
If you file a claim, there's a good chance your insurer will increase your rate.
There are several factors that influence the amount of the increase.
For example, if your claim is for minor damage caused by another driver, the increase may be minimal.
On the other hand, if you file a claim because you damaged your vehicle while driving into a wall, your premiums may rise substantially.
Your insurer may adjust their assessment of the likelihood you'll submit future claims.
Your rates will increase to reflect the adjusted risk.
#2 - Neglecting To Cancel Your Policy Carries Consequences This surprises many consumers who switch auto insurance companies without formally cancelling their current policies.
Instead, they simply stop paying their premiums, believing that doing so represents a de facto cancellation.
In reality, it does not.
Your policy may eventually be terminated for nonpayment, but the event will be included as a negative mark on your credit report.
It can also make finding coverage difficult and expensive in the future.
If you plan to switch insurance companies, submit a formal (in writing) cancellation for your policy to your current insurer.
Provide a specific date on which you would like your coverages cancelled.
#3 - If Your Vehicle Is Stolen, Your Property Is Not Covered Suppose you leave your laptop in your car overnight, and discover your vehicle has been stolen the following morning.
If you have comprehensive coverage, you'll receive compensation for your car.
But will you receive compensation for your laptop? In most cases, no.
Your personal belongings are rarely covered by your car insurance policy.
This is the reason most people should consider buying property insurance.
If your car is stolen with your personal items inside, you'll receive compensation for the loss (unless the items are excluded on your property insurance policy).
#4 - Your Car Insurer May "Forgive" An Accident Some auto insurers offer a special feature called accident forgiveness.
This feature protects you from a large rate increase in the event you cause an accident.
Normally, an at-fault accident can cause your premiums to rise dramatically, even to the point of doubling.
With accident forgiveness, the effect on your rates may be negligible.
Car insurance companies usually offer this endorsement to drivers who have maintained a clean driving record.
If you have multiple tickets or an at-fault accident already on your record, you're unlikely to be eligible.
It's also important to remember that an accident will still be included in your driving record despite it being "forgiven" by your insurer.
#5 - Your Vehicle Has A "CLEAR" History You already realize that the type of car you drive affects your premiums.
But you may be unaware of how it does so.
Every make and model is evaluated each year based on its claims history.
All cars and light trucks receive a Canadian Loss Experience Automobile Rating, or CLEAR rating.
Some vehicles are associated with more frequent, or more expensive, claims than others.
They receive a higher CLEAR rating.
Your insurance company uses these ratings to predict the future claims represented by your car.
For example, if you drive a vehicle that is often stolen, you can expect your premiums to be higher.
Few people enjoy learning about their auto insurance policies.
But reviewing the fine print may reveal details that can save you money down the road.