8 Myths You Might Hear About Auto Insurance

Car Insurance Myths

It is crucial to understand the factors that influence your policy’s coverage and costs when you buy auto insurance. There is quite a lot of wrong information prevailing regarding auto insurance. This article highlights the common myths about auto insurance.

Myth 1 – The Price of Car Insurance Is Determined Through Color

The color of your car doesn’t affect your auto insurancehttps://www.newautoinsurance.com/ costs. However, your auto insurance policy’s price depends on genuine factors, including car model, engine size, car manufacturer, body size and manufacturing year of the vehicle, the cost of repairing, its security record, and the possibility of theft. Sometimes, the insurance company also reckon the driving history or the car owner’s credit record.

Myth 2 – The Older You Get, The More Cost You Have To Pay To Insure Your Car.

The fact is quite the opposite as older drivers get more special discounts. For instance, if a person of age over 55 finishes an accident prevention course, they are offered discounted auto insurance premium prices. Furthermore, people that drive less, such as part-time employees or retirees, are also qualified to get a discount on auto insurance premiums. But the discount and older age program for auto insurance are different in every state depending on the age and insurance carrier.   

Myth 3 – Your Credit Record Doesn’t Affect Your Insurance Rate

It is a myth that a driver’s credit history doesn’t count as the insurance score of a person is based on credit history, and it matters. An adequate credit score reveals your management of financial affairs. Hence, a credit score is a factor that righteously predicts a driver’s probability to file an insurance claim. An insurance company reviews your credit score whether you want to renew, change, or buy car insurance coverage. It is true that people with high insurance scores ultimately have to pay less for car insurance.

Myth 4 – A Car Stolen, Destroyed, Or Damaged Due To Fire, Storm, Or Flood – Your Insurance Will Cover Your Loss

Not every insurance coverage provides this privilege. Only comprehensive and collision coverage alongside standard policy allows you to have this advantage. It is obligatory to have comprehensive and collision insurance if you want to cover your car damage fully. It is not efficient to purchase insurance coverage that costs more than your car.

Myth 5 – You Only Need The Amount Of Auto Liability Insurance Fixed By Law.

Every state has obliged people to pay for auto liability coverage. However, if you only pay the amount of liability, you pay more than the insurance premium for the damage after an accident, and the cost might be high. Generally, the consumer groups and insurance industry suggest $100,000 per person for bodily injury security, whereas $300,000 for each accident. 

Myth 6 – The Auto Insurance Of The Person Will Cover The Loss Of Who Is Driving The Car, Not The Owner Of The Car

Generally, the car insurance policy’s primary insurance provides coverage to the vehicle in almost every state. The policy suggests that the car owner’s insurance company will cover the car’s damages, irrespective of the driver. You must understand the policies offered by your state before you allow someone else to drive your vehicle.

Myth 7 – Civilians Pay More Than The Militants.

Auto insurance offers discount insurance premiums to the soldiers regardless of their division; they are qualified to avail the discount. All you need is to submit documentation regarding your rank and service period. Few insurance companies also offer discounts for the retired military members. 

Myth 8 – Your Car Insurance Provides Coverage To Your Car Used For Business Purposes

Personal auto insurance doesn’t cover the business use of your car if one is self-employed. It is essential to buy business auto insurance and keep an eye on your employees’ driving records who drive your vehicle.