Several myths and misconceptions abound about buying car insurance that make some car owners hesitant about choosing a policy option that can suit their needs. Myths are not only misleading and confusing, but they also have the potential of costing you higher rates as a result of what you do not know or might overlook.
The truth is that the process insuring a car can be complicated and confusing at times, but believing in myths will prevent you from making the necessary plans to protect yourself and your car on the road. The easiest way to find the most affordable coverage or determine whether you can discard or preserve your existing policy is to be an informed consumer. Here are misleading misconceptions that you shouldn’t allow to get in your way.
Myth 1: Credit Score Has Nothing to Do with Auto Insurance
How often have you heard the claim that your auto insurance cannot be affected by your credit score? Contrary to what many believe, your credit record will affect your insurance premium like it affects other aspects of your life such as getting employed, purchasing a home or negotiating for lower insurance rates. Handle your money responsibly and always pay your bills timely to increase your credit rating. At Cheapest Auto Insurance we don't look at credit in case your credit isn't perfect. Get a quote with us today.
Myth 2: My Car’s Color Will Attract Higher Premium
The most common myth is that red colored cars need higher insurance. The truth is that no insurance company will use the color of your vehicle to determine how much premium you are going to be charged. What interest insurers usually include your driving record, the make and model of the car, year of manufacture and engine size. Color is a non-issue when you are negotiating for affordable rates.
Myth 3: Making a Claim Only After Paying From Your Own Pocket
Paying from your own pocket before resorting to processing a claim is not a compulsory requirement by the insurance companies. Whether you pay upfront or you don’t, filing a claim comes later. It is you to decide which is most convenient for your circumstances – getting your car repaired first or filing a claim and waiting. Online insurance companies have networked garages they partner with where you can take your car for repairs so that they directly settle the bill with the garage. But if you cannot find one, it is quicker to repair your car and claim reimbursement instead of waiting. This is not a rule engraved in stone. But please consult with your insurance agent first before deciding.
Myth 4: Purchasing Car Insurance is a Bothersome Process
In this digital era of internet marketing, nothing is as simple as purchasing insurance coverage online. Getting an instant quote of what the premium may cost you involves giving some basic information about your car by submitting a form, and by following simple steps, you can have a policy in place in no time. Here at Cheapest Auto Insurance we can do everything over the phone and internet for complete convenience. Get a quote today at not cost.
Myth 5: Smaller Cars Cost Less to Insure
Do not assume that if you have a small car, your insurance rate will be less than what the owners of juggernauts and SUVs pay. If you factor in things like susceptibility to damage, the safety features, and the probability of protecting your passengers and yourself when an accident occurs, you can see why you are likely to be charged more than someone with a mid-size SUV. Something else the companies do is to investigate the claim history of the car model and type by checking the losses and claims such a vehicle has incurred.
Myth 6: Every Vehicle Gets Full Coverage
Although the term “full coverage” is frequently used by many insurance companies, in practice nothing like that exists. In its applicable sense, full coverage would entail protection against every imaginable calamity or liability. Apart from comprehensive insurance, collisions and liabilities, other things like car rentals and assistance on the road should be included. Before you sign any agreement, find out what is really covered by the policy. The process of getting comprehensive cover may be tricky, but if the insurer is willing to answer all your questions honestly, it should not be all that daunting.
Myth 7: The Amount of Claim You Get After a Crash Can Buy a New Car
Such a belief is contrary to the insurance principle of indemnity which dictates the claim amount. What the insurance companies do only enables you to revert to the pre-accident/damage position. Your condition is not made financially better because the value of your loss is calculated against the depreciation of your present car. That also applies to its market value. Always check with your agent so you know in advance before a claim happens what there policies are in the event of a claim.
Myth 8: The Existing Policy Automatically Covers a New Car
This assumption is a big blunder because you might end up driving a vehicle with no insurance coverage. The moment you purchase a new car, you should immediately let your insurer know so that the policy in place can be transferred to cover the new car.
Myth 9: Age Does Not Determine the Premium Amount
As we discussed elsewhere in this series, a person’s age plays a critical role in determining the premium rate. Younger drivers, males in particular, are known to cause disproportionately more accidents and crashes than any other age group. Senior citizens are also considered a high-risk lot. Young male drivers below 25 years attract higher premiums.
Myth 10: Insurance Policies are Not Transferable
f you drive carefully and handle your car well such that the policy matures/ends without you making any claim, the insurance company will reward you with a No Claim Bonus. You can become eligible for the discount if for the entire duration of your policy, you have not filed any claim. The amount is quite substantial and that is why many people fear they will lose their No Claim Bonus if they move from one company to another. The real fact is that your bonus migrates with you most of the time. However, in some cases it needs filing 90 days before your old insurance expires, and that means you need to renew it early in that case.
These are not the only myths. What more can you add? Whatever you think, car insurance is the only safeguard you have against losses and damages you can incur while driving. Feel free to leave your comments below.
Need an affordable auto insurance policy or a free consultation? Get a quote right now at aautoandhomeinsurance.com