There quite a bit of misinformation about car insurance going swimming. Here we bust five common auto insurance myths.
Myth #1: Where You Live Has No Impact on Coverage
Unfortunately, this is false. While your geographical area may not necessarily become the perfect choice, it does have an affect on your automobile insurance. People who reside in rural areas will certainly pay under people who live in the city, as city dwellers have reached a higher risk for claims due to more and more people and increased probability of theft.
Myth #2: Older Drivers Have Higher Rates
For one of the most part, it's not true. The thing to bear in mind when it comes to car insurance is always that every driver is unique. Although rates for drivers more than the age of 25 are likely to be lower, that is certainly entirely established by driving history. For example, if a 55-year-old driver receives numerous moving violations over the course of a long period then that driver might find their rates increase with time, as opposed to decreasing with each passing year.
Myth #3: You're Covered if Your Car is Stolen, Vandalized, Damaged by Hail, Wind, Fire or Flood
Unfortunately, this can be false. What many people miss is the fact that basic coverage isn't comprehensive. As a result, if your vehicle is stolen, vandalized, or damaged with the elements, you could be held responsible for out-of-pocket repair expenses for your vehicle. However, in case you are leasing a car or truck, you could already be spending money on comprehensive and collision coverage, as it is commonly a condition of leasing.
Myth #4: Your Credit Has No Impact on Your Rate
This is utterly false. Your credit does impact your auto insurance rate, but only regarding your credit-based insurance score. This credit-based score, that's basically a snapshot of how you manage your financial affairs, gives insurers key understanding of just how much of an risk you might be. Bear in mind that since most people have great credit, the odds of developing a credit-based insurance score negatively affect your minute rates are highly unlikely.
Myth #5: The Color of Your Car Makes a Difference
Contrary to popular belief, along with of your vehicle does not have any affect the price of the automobile insurance. For example, many drivers believe that red cars or black cars will give rise to higher premiums, but the truth is providers aren't worried about the color from the car in any way. Insurers are more interested in other activities such as model and make, year and the entire body style, engine style, age of the car, as well as the age and record in the driver. With respect to driving behavior, insurers element in your accumulated points for moving violations when determining your rates, which is important to note.