Car Insurance Myths and the Facts Behind Them

Car Insurance Myths and the Facts Behind Them

It can be a complicated process to get car insurance, you have to find out how much coverage you need, compare quotes from various firms, and then pick the best one for you. Put misinformation into the process, and it is not shocking that some drivers believe that they do not even completely understand their car insurance policy. It can be difficult to decipher the truth from myths with all the details available to policyholders. It is important to know what is protected under your auto policy and the variables that decide your premium. We will break down and dispel some of the most common misconceptions about car insurance to help clear up any misunderstanding about your auto insurance policy and put your mind at ease.

Color Determines the Price of Auto Insurance

How this myth originated isn’t obvious, but it’s a common one. For whatever reason, many drivers assume that red cars cost more to insure and that your car’s color will play into your insurance costs. While certain automobile features may impact insurance costs, the car’s color does not influence your car insurance premiums, and a red car will not cost more than any other color vehicle to insure. The cost of your car policy is dependent on several variables, such as car make, model, body style, engine size, and automobile age, as well as the sticker price of the car, the cost of fixing it, its overall safety record, and the risk of theft.

However, one thing that could affect your auto insurance is a custom paint job. If you have a costly custom paint color on your vehicle that you have added, repainting will not be protected after an accident unless you are explicitly included in your insurance coverage for automotive customizations.

Car Insurance Covers a Car Rental Following an Accident

For example, you unintentionally put your car back into a telephone pole, smashing the back bumper. The loss will be compensated if you have collision coverage. Some assume that if you need a new car when yours is in the store, insurance will compensate you. There are policies available online that will also be suited for foreigners when they visit a certain country. Many drivers including those who are travelers in some countries wrongly assume that if your car is in the shop for a covered claim, a new rental car would be automatically given to you by insurance. But unfortunately, that’s not the case, if you want your insurance to cover the expense of a rental when your car is in the dealership, you need to add-on rental car reimbursement to your policy. Rental car reimbursement is normally an affordable add-on for coverage that will not boost the premiums by any substantial amount.

Your Credit Score Does not Influence Your Insurance Rates

When they calculate your premiums, your credit score is a vital consideration that insurance firms consider. Your insurance score based on credit, which is derived from your credit history, might matter. A good credit score reflects how well you handle your financial affairs is a good indicator of whether someone is more likely to make an insurance claim when you try to buy, adjust or renew your car insurance policy, so many insurance firms take it into account. Individuals with good credit and therefore good insurance ratings also end up paying less for insurance.

When Anyone Else is Driving your Vehicle and Gets into an Accident, any Damage or Injury will be Covered by their Insurance

Key insurance is known to be the car insurance policy covering the automobile. This means that irrespective of who is driving, the car owner’s insurance policy must pay for damages caused by an accident. Policies and laws vary by state, so before allowing another person to drive your vehicle, make sure you understand the rules.

When You Get Older, Insuring Your Car Costs More

Quite the contrary, older drivers can qualify for special discounts. For instance, if they complete an accident prevention course, those over 55 years of age will get a discount on their car insurance premium. Retirees or those who are not full-time working and therefore drive less may also be eligible for a discount on auto insurance. Older driver services and discounts differ by age of driver and state and insurance carrier, so if you believe you can qualify, consult with your insurance professional.

For movies and storytime, myths are fine, but they have no room in your auto insurance coverage. To handle your insurance needs, you need good evidence and sound advice. With all the false auto insurance records, it’s best to work with a trustworthy insurance professional. Hope you were enlightened by this article about the numerous misconceptions surrounding car insurance.