Auto insurance has been around about as long as cars themselves. From the start, people have wanted to protect their investment and themselves. But, through the years some aspects of auto insurance have become misunderstood, and some aspects, that may have been true at one time in the past, are simply no longer relevant.
Here are a few auto insurance myths that you can now be sure are no longer, or never were, true:
If You File a Claim, Your Auto Insurance Rates Go Up
Most people believe that as soon as you file an auto insurance claim, your rates will rise. This may have been true in the past, however today, there are so many other factors that go into the determination of a rate change for your policy. Your driving history, the severity of the accident, who was at fault and by what percentage, and the specific details of your policy and coverage are all taken into consideration. And, believe it or not, the fact is that a claim does not always lead to a rise in rates. Essentially, insurers now know that accidents happen, and this does not always mean you are a higher risk than before. Many companies now offer accident forgiveness programs.
If You Own a Red Car, You’re Going to Pay More
This myth has been around forever. It’s long been said that red cars are easier for police to spot when speeding, or that people who own red cars just drive faster than other people. Also, it hasn’t helped that red is a preferred color for high-performance cars. But, the truth is that the color of your car has no bearing on your car insurance rates. What does matter are the make, model and type of car you drive. Even more important is your personal driving record. Other things that are considered are you age, where you live and your credit score.
The Less I Pay for Auto Insurance, the Better
In most other circumstances, when you are making a purchase it is better to pay less. But when it comes to your auto insurance, you may want to consider what this really means for you should you get into an accident.
Price should not be your only consideration when choosing your auto insurance. Consider the level of protection you are buying and whether it will meet your needs should something happen. Also, choose a deductible wisely to balance your monthly expenditure with what you will have to pay in the event of an accident.
Their Auto Insurance Company Will Pay
Assuming that someone else’s insurance will pay for damages to your car or your own personal injuries is usually incorrect. For instance, if a friend drives your car and has an accident, you are still liable. Their insurance may help once yours has been exhausted, but your rate may certainly be affected.
So, stay away from myths and get the facts about your car insurance coverage. Use the InsuranceWins simple quote form to find out the facts about how much you will pay today.