When buying an auto policy, it is vital for the car owner to understand the factors that affect policy coverage and costs. Unfortunately, there is too much terrible advice out here. It is important to be enlightened, so disregard these myths.
1. Color determines how much you pay
Whether your car is red, white, green or any other, the price of your policy is not pegged to its color. Some people assume that red cars attract higher rates, which is false. The cost of a car policy is based on several factors such as the body type, age, model and make of your vehicle. Its overall safety record will be checked as well as its likelihood of theft. Sometimes insurers also consider the record and credit standing of the driver.
2. The minimum auto liability insurance required by the law is adequate
Most of the state laws need car owners to purchase a certain amount of auto insurance coverage. However, buying the minimum means that you have to pay more in the event of an accident. Sometimes these out-of-pocket costs are steep. Therefore, stay safe by getting comprehensive coverage.
3. If you are below 25 years, shopping for car insurance is unnecessary
On the contrary, buying around for the best rates is crucial as it can save you money. Although insurance rates tend to be high for the young drivers, shopping can make a significant difference. Most insurance companies have different rates as well as savings, which can also apply to drivers under 25.
4. If you use your car for work, your employer’s insurance will cover it
Your car insurance covers your personal use, and not commercial. So, if you use your car for work-related duties, you need to notify your insurer. The insurer will analyze the situation and determine whether your policy includes the coverage.