Understanding The Importance Of Motorcycle Insurance

Debunking 4 Common Myths About Auto Insurance

by Raymond Gibson

Getting auto insurance can be a daunting process. You have to figure out how much money you're willing to spend on insurance, review different coverage plans, and choose the offer that suits you most. Additionally, you're likely to receive a lot of information from friends and family regarding car insurance, which may be true or false. This post will separate fact from fiction by debunking common myths about car insurance. 

Red Cars Are More Expensive to Insure

If you've been planning to buy a red Sedan but are afraid your insurance company will charge you more premiums, you can rest easy because this is just a myth. Insurers don't care whether your vehicle is red, blue, green, silver, or yellow. This doesn't mean your car's paint is totally irrelevant. If you add a custom paint color on your Sedan and an accident occurs, your insurance company may not cover the repainting if you haven't paid for that protection. 

Going for Minimum Coverage Saves You Money

If you're going to pay lower premiums for less coverage, it might not save you a lot of money in the long term. When purchasing a car insurance plan, you should consider all possible scenarios. Accidents do happen — even to the most cautious drivers. 

Think of a situation where you've bumped into another motorist's expensive model by accident, and you're required to pay for the damages. If you don't have a property damage plan, you could end up covering the costs from your pockets. Spending a little bit more on car insurance now can save you a lot of money over time. 

Getting Involved in an Accident Raises Your Premiums Automatically

Filing a car accident claim won't automatically raise the premium amount. Insurance companies understand that getting involved in an accident doesn't automatically mean you're at fault. They'll consider factors such as your driving record, the cause of the accident, your claim's size, and whether there were any casualties or damages from the accident. 

If you were at fault for an accident that caused multiple injuries or severe damages, your insurer is likely to raise your premium amounts. But, if you hit a light pole by accident, causing minor cracks on your rear bumper, chances are there won't be any changes in your plan. 

There's an Ideal Time to Purchase Car Insurance

If you're looking to buy auto insurance, someone might tell you to wait a little longer for the 'best time of year.' But there's no such thing as 'best season' or 'best month' when it comes to auto insurance policies. In any case, the earlier you purchase an auto insurance plan the better, as most insurers will look at your insurance history when calculating your premium amounts. 

To learn more, contact an auto insurance company near you.