If you’re looking to save on your auto insurance policy, it’s important that you get your facts right. This is why it’s necessary to dispel some of the long-held misconceptions that pass for common wisdom among auto insurance shoppers.
What are these myths and should you dismiss them?
There are various factors that influence the cost of your insurance policy but that does not include the color of your vehicle. Whether your ride is Anything on the Adam or Gotta Have It Green, your insurers will not bat an eye unless there’s a dent on the rear that gives away your last summer’s reckless escapade.
Typical determiners of auto insurance policy cost include the vehicle’s make and model, mileage, its sticker cost, and the driver’s driving and insurance history, among others.
Credit doesn’t count
While this may have been true in the old days, having bad credit now may also affect the cost of your policy. This is because more insurers and providers are starting to gauge a policy applicant’s dependability by her or her credit record. If you have good credit, you are seen as a more reliable and responsible individual and vice versa. A good credit shows how you handle your insurance affairs and can more or less mirror whether someone is more likely to file a claim.
Older drivers pay more
Definitely not. In fact, younger drivers are seen to be riskier because they have less experience. Older drivers, on the other hand, may have access to some special policy discounts. If you’ve been driving for many years and are applying for a new insurance policy without any history of claims, insurance companies may even give you a better rate.
Soldiers pay more
It’s quite the opposite. In actuality, soldiers, armed forces, or members of the military receive discounts for their auto insurance premiums. They just need to show proof of their service to qualify for such benefits.
Your policy protects your car from theft, damage, or loss due to fire or flood
Yes, it does, depending on the cost of damage or the cost of your vehicle. Experts advise that it may not be cost-effective to purchase comprehensive and collision coverage if your vehicle costs less than 10 times what you pay for the premium or if it’s less than a thousand dollars.
You need to know the full coverage and limitations of your policy to ensure that you are adequately covered in events like these.
You only need minimum insurance coverage
Having an insurance policy does not mean it will protect you when you’d need it. Be warned of the danger of being underinsured. If you only have the minimum insurance policy recommended by your state, you risk paying more from your own pocket when disaster happens. Whether that means paying for liability or repairs, more often than not, those payments would most likely exceed your minimum coverage. If you’re just going to buy a insurance policy, see to it that you’re paying for good cause.
If another person drives your car and it gets into an accident, that person will pay for pertinent damages
Rules differ from state to state. Depending on the location, it may be the driver or the owner of the vehicle that caused the damage who is going to shoulder the liabilities.
Personal auto insurance cover for business liabilities
Self-employed individuals often use their own vehicles for business purposes without adequate coverage. In the event of accident resulting to loss in revenue, your standard policy’s liability coverage may not cover for the loss. Be sure to purchase the adequate coverage.Click to See the Latest Mortgage Rates»