Facts About Auto Insurance You Never Knew
1. The color of your vehicle affect the rate
A red or yellow car costs no more than a gray or blue car. This is one of the biggest myths told. Don't be concerned about the color of vehicle you are buying.
2. When you move, your rate will stay the same
Depending on where you move to, your rates could increase or decrease. There are localities that are more accident prone than others and insurance companies set their rates according to the statistics.
3. The rate will be the same at all the insurance companies:
Shop around! Not all companies will hold you to the same rates.
3. If a person is driving your car and has an accident, their insurance covers it:
No way; your insurance is the liable party. It is a good idea to be very choosy in whom you allow to drive your car.
4. Your personal insurance covers if you are driving for business:
This is another big myth. If you are driving your automobile to deliver food or do business dealings with, your car is not covered by your personal auto insurance. Speak with your agent and they can probably get you into a policy that will cover you and your car during business driving.
5. Insurance company can cancel a policy anytime they want to:
There are State laws that keep insurance companies from canceling a person in the middle of a policy. They have to be able to show very good grounds for doing so.
6. Items in the car are covered under any insurance policy:
Only the people and the car itself is covered with full coverage insurance. Your personal items such as a laptop or stereo system are usually not covered unless you have a special policy that does.
Always ask an insurance agent before just believing what many people say about insurance policies. Just because someone or a website says a statement doesn't always mean it is correct.
More Unknown Fact List about Auto Insurance:
1. Credit Score Impact
Your credit score affects auto insurance rates; a higher score often leads to lower premiums. Insurance companies use credit information to assess risk levels.
2. Marital Status Matters
Married individuals tend to receive lower insurance premiums than single ones. This is because insurers view married couples as more responsible and less risky.
3. Car Safety Features
Vehicles equipped with advanced safety features, such as anti-lock brakes and airbags, can qualify for insurance discounts. These features reduce the risk of accidents.
4. Mileage and Rates
Low-mileage drivers typically enjoy lower insurance costs. Less time on the road reduces the likelihood of accidents, leading to potential savings on premiums.
5. Teen Driver Premiums
Adding a teenage driver to your policy can significantly increase insurance premiums. Younger drivers are considered higher risk due to their lack of driving experience.
6. Driving Record Impact
Traffic violations and accidents on your driving record can result in higher insurance rates. Maintaining a clean driving record helps keep premiums affordable.
7. Coverage Lapse Consequences
Allowing your auto insurance coverage to lapse can lead to higher rates when you reinstate coverage. Continuous coverage demonstrates responsibility to insurers.
8. Multi-Policy Discounts
Bundling auto insurance with other policies, such as home or life insurance, can lead to discounts from insurers. This strategy can save you money on premiums.
9. Claim Frequency Influence
Frequent insurance claims can cause your premiums to increase. Insurance companies may view frequent claims as a higher risk.
10. Annual Mileage Reporting
Accurate reporting of your annual mileage can impact insurance rates. Lower mileage often results in lower premiums, as it reduces the risk of accidents.
