Auto insurance is a necessity for every car owner. It provides a sense of security and peace of mind while on the road. However, there are several car insurance myths that people believe to be true. Don’t get caught up in these myths because they can lead to misunderstandings and confusion, resulting in costly mistakes. We are going to debunk the top 7 most common auto insurance myths right here in this article.
Myth 1: Red Cars are More Expensive to Insure
Have you ever heard of this silly car insurance fact? The color of your car has absolutely no impact on your insurance premium. Insurance companies base their rates on several factors, such as the make and model of the car, the age and driving record of the driver, and the location of the vehicle. The color of the car has nothing to do with the insurance cost.
Myth 2: Insurance Prices Go Up When You Get Older
This is a common misconception. It often gets confused because premiums are based on a factor of age and driving record. Insurance premiums rarely increase as you age, in fact sometimes, insurance companies offer discounts to older drivers with a clean driving record. Older drivers have more experience and are considered to be less of a risk on the road..
Myth 3: The Lowest Car Insurance is Always the Best
While it may tempt you to opt for the cheapest car insurance policy available, it may not provide the coverage you need. The lowest car insurance may not include all the necessary coverage. Without all of the necessary coverage, you could be left vulnerable in case of an accident. It is important to compare all your options and policies to select the one that offers the right coverage for your needs.
Myth 4: Personal Car Insurance Covers Business Use
If you use your car for your business purposes, your personal car insurance policy may not cover any accidents that occur while using the car for business. It is essential to get a separate business car insurance policy which will ensure that you are covered adequately.
Myth 5: You Only Need the Minimum Coverage Required by Law
While it’s mandatory to have liability coverage in most states, it may not be enough to protect you in case of an accident. You may want to consider additional coverage such as collision and comprehensive insurance to provide further protection in case of theft or damage to your car.
Myth 6: Your Insurance Rates Will Increase After an Accident
While it’s true that an accident can lead to an increase in your insurance rates, it’s not always the case. If you have a clean driving record and no previous accidents, your insurance rates may not increase. However, if you have a history of accidents or tickets, your rates may go up.
Myth 7: Your Credit Score Doesn’t Affect your Insurance Rates
Many people believe that your credit score has nothing to do with their insurance rates. However, insurance companies use credit scores to determine insurance premiums. If you have a low credit score, you could be charged higher premiums.
Do not let these myths derail you from getting the best coverage for your care. It is essential to understand these misconceptions to help you make informed decisions when it comes to choosing the right care insurance policy.
Contact the experienced auto agents at Arthur Blake Insurance to make sure you’re getting the best car insurance for your vehicle. Our agents in Plano, TX can help you receive the best premium coverage. Contact our agency here or call (972) 954-6383 to speak with a local agent today.