There are some car insurance myths that need to be busted. Read over these following myths and find out why there is no reason whatsoever to not have car insurance!
The color of my car matters.
You might think that bright colored cars and especially red cars may be a hot ticket item for insurance companies, but they do not drive premium prices up as is widely believed. Car insurers are more interested in the make and model, year, body style, engine size and in some areas, location. What does count, however, is drivers’ behavior when in the car. Moving violations, like speeding or reckless driving that result in “points”, certainly affect the cost of premiums no matter what color the vehicle happens to be. You may care what color your car is, but insurance companies certainly don’t.
Credit scores don’t affect insurance rates.
Most car insurers take a lot of factors into consideration when determining your premium rates. Since your credit score is an indication of how well you manage your financial affairs, many companies look at this number if you want to purchase, renew or change an insurance policy. Your credit score is the one concrete number that could increase your premium rates. So having a good credit score can come in handy when getting car insurance.
My insurance company can cancel my policy at any time.
This is a BIG myth! Unless you give your insurance company an adequate reason to do so, car insurers can’t just cancel a policy in the middle of a term. Grounds for cancellation may include fraud or non-payment of premiums, but other than that your policy should stay intact for the duration of your contract.
It costs more to insure your car when you get older.
The truth about this one is quite the opposite—many drivers over 55 years of age can in fact qualify for a reduction in auto insurance rates, typically for three years, if they have successfully completed an accident prevention course. Insurance companies will usually provide up to a 10% discount on car insurance, but check with your provider before you sign on. If you are retired or are not employed full time, you may also be eligible for a discount of up to 5% off your car insurance. Age requirements for this type of discount vary by state and insurance carrier.
Having kids doesn’t affect your car insurance needs.
Sure, the addition of a new family member won’t directly impact your car insurance rates, but that new little guy or gal might bring about some changes that will affect your driving needs, which will then change your car insurance requirements. If you haven’t looked at your policy since you have had a child, now might be a good time to reassess your limits, coverages, and deductibles.
There are other myths that you may come across, but whenever you have any question about what is and isn’t true; just ask us here at EZ Insurance! We will be able to let you know all you need on what goes into getting and keeping your car insurance policy. Get covered today!