Truths And Myths About Insurance
When it comes to auto insurance, there are tons of information about it. Along with that, comes facts and myths. I recently looked up some common “myths” about auto insurance and thought to share them with you all. Below are 8 common myths that I found out about…
- Color of your vehicle matters when it comes to pricing out a quote. I think this is the most popular one. A lot of people think they will get quoted higher if their car is a certain color. People think Red is one of them. That is far from true, color will NOT affect the pricing of your auto insurance. When you get a quote, they wont even ask that. What does matter is the make, model, age etc. of the car
- The older you are the more costly your insurance will be. This is not correct at all, the older you get the more discounts that could come your way. For instance, if you are 55 and older, you can get a discount on your premium by completing an accident prevention course. Ones who are retired and do not drive as much can also be eligible for a discount. You will just need to check with your insurance carrier to see what is available for you.
- Credit has no affect. Your credit score can in fact matter. The better the score, just shows the carrier how you deal with your finances and can show them if you will be a customer that is stable and wont file as many claims and so forth. The better the scores, the less you may be paying in insurance.
- Coverages. I’ll just leave it at that word only, because there are a lot of confusion when it comes to what is covered and what is not. Big question. Will insurance cover theft, vandalism and or natural disasters? IF you have comprehensive and collision on your policy then you can have your car full protected by these types of things.
- You can settle for just the minimum amount of liability insurance required by your state. So, yes you can purchase just the minimum, but you get what you pay for. So, if an accident happens or damage to your car or others the out of pocket cost if you didn’t get better coverage could be much more than you bargained for by only getting the bare minimum. Just something to think about when shopping around.
- If someone else is driving your car and gets into an accident, their insurance will cover it. Most states, that will fall on the owner of the car insurance company, not necessarily the driver. Each state is different, so before allowing someone to drive your car, just make sure to know the rules and what can happen if an accident occurs.
- Soldiers pay more insurance than regular civilians. This one I did not even know existed, as far as a myth. But, regardless of which branch you are in, if you are in the military you qualify for a discount on your insurance. You of course will need to provide the correct documentation for proof. Again, each insurance carrier is different so just shop around and see what each is willing to provide.
- Your personal insurance policy covers your car for business use. If you are self-employed and you use your car for your business, then you will need to purchase business insurance for your car, as your personal will not cover.