Top 5 Auto Insurance Myths
Understanding all nitty-gritty of an auto insurance policy is fairly difficult.
Still before buying insurance for your car, you must acquire at least the basic knowledge regarding the same, especially if you’re a first time car insurance buyer. You should know the facts and fictions related to auto owners insurance to ensure that you’re making the best and the most affordable auto insurance deal.
When it comes to car insurance, there are some myths. Let’s have a look at some of those common myths.
1. The color of car – Most car drivers have a notion that the color of the car influences the price of insurance. In reality, color of car doesn’t have any impact on the insurance premium. The insurance companies hardly care for the color of the car. Rather they consider the make, model, year of manufacturing, engine size, location (where the car is kept) and top of all, the driver’s attitude while determining the premium.
2. Age of the car – People think that old cars can’t be the target for being theft. But this is wrong. According to a survey by the National Insurance Crime Bureau, old cars are susceptible to be theft as they are easy to steal. The car-crooks’ preference level differs by state. In Texas, the thieves prefer to steal trucks, while in California, Toyotas and Hondas are more preferred.
3. Credit score – Don’t think that your credit score doesn’t impact the premium rate. Be it auto insurance or home insurance, both credit profile and credit score can influence the rate of premium to a great extent. The lenders use credit score of an individual to evaluate how good he/she is in managing personal finance and financial affairs. They check the score while the individual applies for buying, renewing or changing a policy.
4. Policy cancellation – People often think that insurance companies can cancel their policy any time. In reality, unless there is any valid reason, an insurance company never cancels a policy. The reasons for cancellation may include premium default or fraud.
5. Personal belongings – If your personal belongings like a laptop, kept inside the car, are stolen or damaged, you won’t get any claim. Your auto insurance policy doesn’t provide any coverage for the items inside your car, in case of an accident. However, you can file a claim for these items through your homeowner insurance policy.
Discussed are a few myths and folks that you must be aware of while planning about buying a new auto insurance policy or, change or renew the existing one. It would help you avoid having unwanted headache and twinge in your pocket in future.