Common Misconceptions About Car Insurance
An informed consumer is able to get affordable car insurance which offers comprehensive coverage. However, one can get entrapped in the common misconceptions about car insurance. Hence, it’s important to be aware of these misconceptions. This article will make you aware of the common misconceptions about car insurance. You’ll learn about the common car insurance misconceptions which you should avoid.
Red cars demand expensive premiums
• Many people believe that flashier painted colors like red demand expensive car insurance premiums. However, it’s not true. Auto insurance companies don’t consider this factor. They do not assess the colour of your auto while determining your premium.
• What the car insurance companies do consider is the vehicle’s make and model while determining one’s premium. They also consider the vehicle’s body type, the year of purchase and it safety features.
• In simple terms, the more expensive cars such as SUVs & luxury automobiles demand higher premiums. This is so due to the vehicle’s costly parts which it is made of. However, if the vehicle possesses safety features like ABS and airbags & anti-theft device then you can get a discount over your motor insurance.
Age doesn’t matter when deciding the cost of car insurance
• This is false. The truth is that drivers under 25 years of age & seniors above 65 years of age pay greater premium.
• Statistics reveal these age groups lead to more traffic accidents than the drivers aged between 26 years-64 years. Studies show that the segment under the 25-year olds is more involved in traffic accidents than others. As a result they have to pay the highest premiums.
I ‘am not accountable in case a friend damages my car
• The real fact is that in case your car gets damaged then it’s your responsibility. You will be hold accountable even for your friend’s mistake which results in your car’s damage thus raising your premium.
• However, your insurance plan will cover the damage cost regardless of surrounding circumstances of the accident.
My credit score won’t affect my insurance premium
• The truth is that your credit score impacts almost each & every important aspect like getting a job, buying a home & even getting car insurance at low rate.
• One can enhance his/her credit score by timely payment of bills & being financially responsible.
• You can simply go online & run a free credit report. In this way you can review your standing & take necessary actions to enhance your score.
Collision will cover all non-driving damages
There are many drivers who believe that they’ll get covered even for non-driving damages. However, it’s not the case. It’s important to remember that collision only covers the driving-related incidents. However, the collision cover doesn’t cover the non-driving damages like theft & vandalism. Also it will not cover damages happened due to events like fire, storms and from animals. If you would like to be protected against non-driving damages, speak with your insurer about comprehensive coverage.
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