Car Insurance Myths
As with everything, there are common misconceptions with insurance. Car insurance especially. We’ll discuss just a few of the big ones, so in case you were wondering…after this, you won’t be.
#1 – Your credit score has no affect on your insurance rate.
Not true. It actually does come into play, and insurers to take it into consideration. When you’re first purchasing, changing or even adding new coverage.
#2 – If my friend borrows my car and gets in an accident, it’s their fault.
False again. It’s your car, so therefore it is your responsibility. Regardless of who was driving, you still run the risk of it going on YOUR record and YOUR premium going up. Though, there are loop holes. If the damage exceeds your limits your friends insurance could act as excess.
#3 – If I drive a red car, my insurance goes up…
How many times have you heard that the red sports car insurance is higher than the average? That may very well be true. But it wouldn’t be because of the color. Your rate is determined by many factors (year, model, make, engine size…etc) but color is not one of them.
#4 – I just paid my premium. So now my car is insured and I’m good to go!
True! Kinda…It’s required by most insurance companies that you notify them or an agent a few days after your purchase.
#5 – Even if I don’t have comprehensive, I’m still covered for wind, hail-stones, and theft.
Sorry, but no. Just because you have collision does not mean that you are covered. Collision is simply for driving accidents, anything more involved is covered under comprehensive.
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