You have probably decided to purchase an auto policy but perhaps have developed cold feet because of different myths about car insurance. At this point, you must have good knowledge of the factors that are related to your policy coverage and cost to separate the facts from the myths about car insurance.
While there are different reasons why people don’t buy purchase a proper car insurance policy, the misconceptions surrounding car insurance play a significant role in discouraging them. The right information will help you purchase adequate car insurance coverage. The following are the common myths about car insurance you should be mindful of:
Myth 1 – The price of auto insurance is determined by the vehicle’s color
The color of your car has nothing to do with your auto insurance cost. However, there are other factors that affect it, such as engine size, age, price, body type, and model. Besides, the repair cost, the likelihood of theft, and overall safety record will also determine your auto insurance policy cost. Insurers also take into account the age, driving record, and sometimes the credit history of the driver.
Myth 2 – Auto insurance costs more for older adults
It does not cost more to insure your car when you are older. The truth is, older drivers enjoy special discounts, but it varies by state.
Myth 3 – Your credit doesn’t affect insurance rate
This is another one of those car insurance myths you shouldn’t fall for. Your credit may affect your insurance rate. A good credit score shows that you have been able to manage your financial affairs properly. Most insurance companies consider this when you want to buy an auto insurance or have it renewed/changed.
Myth 4 – You are covered if your car is stolen or damaged
This will only be possible if you opt for collision and comprehensive coverage insurance to totally protect your car from all forms of damage. If your car is not worth $1,000 or 10 times the premium, it is not cost-effective to buy the extra coverage.
Myth 5 – In the event of an accident while your car is driven by another person, their auto insurance policy will cover the damages
The insurance company of the car owner must pay for damages that result from an accident regardless of who is driving the car at the time. Policies differ by state, so make sure you know the rules before allowing someone else to drive your car.
Myth 6: It is stressful to buy car insurance.
The process of purchasing and renewing your auto insurance has never been easier. You can do this online by visiting an insurance provider’s website and filling in your car’s details. You will get an instant quote for auto insurance. After this, you will just need to follow a few more easy steps to activate your policy, which will be delivered to your email and address.
These are some of the common myths surrounding car insurance that you must dispel before buying the right auto insurance coverage. Work with an agency that can secure you the right auto insurance policy. Contact Action Insurance Group who can help you find reliable coverage for the right price.
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