Ten Auto Insurance Myths Debunked
People believe many myths about auto insurance and auto insurance rates. It is important to know which myths hold some truth, in order to make informed and adequate personal choices.
One common auto insurance myth focuses on the price. Many people believe that less expensive options are always better, but on the contrary, insurance rates have their specific prices for a reason. More expensive insurances provide coverage for higher number of incidents and damages.
Another myth focuses on the age and experience of drivers. Auto insurance rates take various factors under consideration. The experience of the driver is just one such factor. Many insurance companies offer young people a discount.
One of the biggest problems that many people face is their belief that a car insurance will provide coverage for nearly any occurrence, including theft or vandalism. The two types of coverage needed to give the car owner security in all instances are collision and comprehensive insurance policy.
Drivers of sports cars and the ones that love high speeds are usually considered to be high-risk drivers. These people get stopped and inspected by police more often, which in turn affects their car insurance. This is another myth. On the average, owners of sports cars commit the same amount of violations as other drivers.
A number of car owners feel certain that they can contact the insurance company during any day and any hour. When an accident happens, however, they discover that the insurance company will accept a claim solely during office hours. Knowing this fact is of essential importance.
Car owners have some rights, once they have signed the policy. Some believe that the insurance company can terminate the contract or modify its terms during any given time period. This myth holds no truth. A contract gives the vehicle owner some rights as well. The policy can be discontinued once the term ends. Even if the company decides to do so, it must give the vehicle owner a 30-day notice.
Old cars are more inexpensive, which means that getting cheap insurance for them is easier. Forget about this myth. The older the car is, the higher the risk for the insurance company. Auto insurance rates for old vehicles tend to be more expensive since these cars will require regular repairs. In addition, they lack various of the safety features that new cars are equipped with.
Many other auto insurance myths exist, as well. People believe that if someone is driving their car, the insurance company will provide coverage for an accident. Other common myths include the belief that insurance companies provide rental cars in the case of theft and that credit fails affecting insurance premiums.