There are many old wives tales that we have all heard. One example is the one about breaking your knuckles and how it will cause arthritis. This story is based on myths and lies, so get out there and make some noise. Folklore, urban legends, and myths – whatever you want to call them – often arise around important things we don’t understand. Auto insurance is a mandatory requirement in the United States. It also has a significant impact on our monthly budgets. This is why there are so many auto insurance myths. We’ll be debunking 10 of the most misleading myths about auto insurance.
Myth 1 – I will save money if I get the lowest quote.
Fact: Auto insurance is essentially buying peace of mind. You’re not putting your life on hold if you get into an accident. It is better to get automobile insurance quotes from a company with a good reputation and who will pay you if you file a claim. This will ensure that you are covered for any damages or losses. It is not a good idea to choose an obscure or fly-by-night insurer just because they offer the lowest quote. You could lose a lot of money if the company rejects your claim or doesn’t have enough funds to pay you.
Myth 2 – I only need Minimum Liability.
Fact: Both Yes and No. You only need minimum liability to drive legally. It is not enough to protect you in case of an accident. Minimum liability refers to the minimum amount of car insurance that you must purchase in order to legally drive. The amount varies from one state to the next. There are many types of accidents that are not covered under minimum liability. Your car’s damage to other people’s cars is not covered by liability. This does not include damage to your car or theft. It is recommended to have collision and comprehensive coverage.
Myth 3: Red cars cost more to insure.
Fact: No. Your insurance rates are not affected by the color of your car. Your insurance rates will be affected by the make, model, and color of your vehicle. However, it is not affected by the color.
Myth #4: Old cars are more affordable to insure.
The truth: A deteriorating vehicle will be more expensive to maintain, require more frequent repairs, and have fewer security features. Insurance companies charge higher premiums for these cars because they pose a greater risk. Car insurance rates for second hand vehicles that are less than two years old and in good condition are the highest.
Myth 5 – My insurance company has the right to cancel my policy at any time, for any reason.
The truth: An insurance company cannot cancel a policy once it has been signed. What cancellation provisions can be included depends on the state laws. A policy can be cancelled if it is not paid or fraudulent. A company can choose to end a policy with a customer at the end. In this case, it must notify the customer within 30 days. You can complain to your Insurance Commissioner if you feel your policy was cancelled unfairly. The National Association of Insurance Commissioners website has contact information for all 50 states.
Myth 6 – Insurance companies don’t care about your credit scores.
Fact: Credit scores do affect your insurance rates. Your credit score is what insurance companies use to determine your financial credibility and financial reliability. The insurance company will determine what insurance rates you can get based on your credit history.
Myth 7 – An injury will always raise my insurance rates
Fact: Many insurance companies offer a program called “First Accident Forgiveness”, which means that your insurance premiums will not be affected by the first accident you have. An accident does not necessarily mean an increase in your insurance rates.
Myth 8:Younger drivers always pay obscene interest rates.
Fact: Not necessarily. Many car insurance companies offer discounts to young drivers who have completed defensive driving credits. Students below 25 years old can get discounts for outstanding academic performance. Installing anti-theft devices and airbags can be a great way to get student discounts. These discounts can be used to get affordable insurance rates for student drivers.
Myth 9 –Car insurance covers thefts from my car.
Fact: Car insurance does not cover personal property left in the vehicle. These items may be covered by some home insurance policies, but the coverage varies from policy to policy.
Myth 10 If I am in an accident with another party and they are at fault, but have no insurance, my insurance company will cover my damages.
Fact: Not necessarily. You will be covered for damages to your vehicle and personal property if you have enough Collision or Uninsured motorists coverage. If you don’t have enough Collision coverage or Uninsured Motorists coverage, you are on your own. Some states have mandated that all drivers must be covered by Uninsured Motorist coverage.
What have we learned today? It doesn’t make a statement true just because many people say it. These statements have all led to poor insurance decisions. Save your family and friends money by spreading the word about these auto insurance myths.