When it comes to knowing how the insurance premiums are calculated, there are several misunderstandings that might impact most of your decisions when auto-insurance is involved. But it is important to note that most are untrue. Where they originated from or why they are so common is no one's guess.
Below is a list of common auto-insurance myths that will help you make a knowledgeable decision when buying your vehicle insurance.
1. Insurance premium for pink and red cars is very expensive
While there are some rumors that pink and red cars insurance rates are expensive, the color of your car does not affect insurance premiums. Some people believe it is costly to paint a car red or pink. But the truth is that the model or the make will affect the rates, but the color cannot.
2. The more expensive your car is, the more costly it is to insure
The buying price of your car cannot affect the premium rates. In fact, a mid-priced car may cost more to insure than a luxury car. This is because it may have a higher loss history or it is expensive to repair. The most important thing is to consult your insurance agent before purchasing a car.
3. A traffic offense automatically increases your insurance premiums
Even though a traffic offense is not something to be proud of, if the offense is minor, and the overall record is clean, your insurance premiums will not change. However, your insurance rates can be affected by multiple traffic offenses.
4. You only need to observe the state-minimum auto insurance laws
4. You only need to observe the state-minimum auto insurance laws
There are state-minimum car insurance laws that every driver has to carry, but the amount might not be enough in case of an accident. Buying only the state-minimum premiums means you will have to pay more from your pocket if you are involved in an accident.
5. Your credit score will not affect the insurance premiums
6. Comprehensive insurance policy is all-inclusive
5. Your credit score will not affect the insurance premiums
There are many factors that are used to calculate your auto insurance premiums that include your driving record, age, and gender. However, some states permit insurance companies to consider credit score when determining insurance rates. It is believed that drivers with higher scores have fewer accidents.
6. Comprehensive insurance policy is all-inclusive
Even though comprehensive insurance covers many things, it does not cover everything.
There are many factors that affect the insurance rates but are not common as the six myths mentioned above. They include safety features, and how and where your vehicle is driven. Where your car is parked at night may also affect the insurance rates.
It is possible to change your auto insurance rates with a good driver account, after attaining a certain age, and probably get a discount for taking many policies with the same insurance company.
Bottom-line
The most important thing is to engage your auto-insurance agent when buying the insurance. Also, discuss the discounts you may qualify for, and the things you can change to affect your insurance premium. If you want to pay cheap auto-insurance, start by driving safely and keep an accident-free driving license
It is possible to change your auto insurance rates with a good driver account, after attaining a certain age, and probably get a discount for taking many policies with the same insurance company.
Bottom-line
The most important thing is to engage your auto-insurance agent when buying the insurance. Also, discuss the discounts you may qualify for, and the things you can change to affect your insurance premium. If you want to pay cheap auto-insurance, start by driving safely and keep an accident-free driving license