3 Common Car Insurance Myths That Need To Be Scrapped
Posted on: 26 June 2015
Car insurance can be a tricky subject as there are many factors that come into play regarding coverage options and premium rates. Due to this, there are a lot of myths surrounding car insurance that are out there. Below are three such auto insurance myths and the facts behind them.
Myth #1: My Insurance Covers Theft, Vandalism, and Weather Damage
Fact: The coverage items mentioned above are not standard, but they can be purchased as an optional add-on.
Comprehensive coverage can be a great add-on to your overall insurance package, as it will cover the above mentioned theft, vandalism, and other non-accident related damages. This is especially important for those who live in high-crime areas or who worry about natural disasters damaging their vehicles. The unthinkable can and does happen, so extra coverage can be comforting to have.
Myth #2: Once I Turn 25, My Rates Will Decrease
Fact: Age can be a factor when determining insurance rates, but it isn't the only one.
25 is not a magical age where drivers acquire super-safe driving capabilities. Instead, 25 is used as a general guideline by insurance companies for risk-management purposes. Car insurance companies are more likely to look at experience and driving records, however. If you've been driving since the age of 18, then you'll have about 7 years of experience when you turn 25. That's not true, though, for those who get their license at 21 or 23. 25 is a guideline – not a hard-and-fast rule.
Myth #3: A Speeding Ticket Will Automatically Increase My Rates
Fact: Drivers with the occasional ticket usually need not worry.
While faster speeds do usually mean more risk of an accident, the occasional ticket isn't something that most insurance companies are worried about. If your driving record is clean, with minimal claims and violations, you probably won't see an increase in rates. If, however, you're a serial speeder or have been involved in multiple accidents or other claims, this could negatively impact your wallet.
The myths surrounding coverage limits, rate decreases, and rate increases abound. The above myths are just three of the most common ones you're bound to hear. For more information, and to better understand your policy coverage, contact a car insurance agent such as those at Senella Insurance Group. They can better walk you through your own policy and answer any questions and concerns you may have about your coverage.
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