There are so many myths related to auto insurance. Should you believe any of them? There are a lot of conversations that revolve around this topic and most of them are full of things that have been made up or just aren’t true. We’re going to take a look at a few of them so that you can avoid falling for them, which will in turn help you save some money on your auto insurance.
The following are the myths most people believe:
A full coverage policy implies a new car
One of the biggest myths people seem to believe is thinking they can completely crash their car, and that their insurance provider will give them enough money to purchase a new vehicle. This only happens in the rarest of cases. Full coverage means that you will get enough money to deal with the damages and fully repair your car. This amount is always less than the amount required to purchase a new car.
So now when you buy a policy and the representative talks about full coverage, be sure to get the details from them. This full coverage will probably be limited to liability, rental imbursement and property damage.
Reputable providers do not make use of the term full coverage. Instead they use collision insurance and comprehensive insurance.
Traffic tickets lead to a rise in premiums
In some cases, the answer is yes, but the truth of this statement is dependent on the situation. If your charges are serious like being drunk while driving or driving recklessly, your premiums will rise by as much as 80%. If the charges are modest and it is the first speeding ticket which you have, insurance companies will be lenient and waive it off.
And by the way, if lady luck is with you, insurance providers hardly ever find out about these tickets until you let your policy lapse, suffer from an accident or change your provider. As long as they are not aware of your tickets, you are safe.
Credit scores have nothing to do with auto insurance premiums
Completely false. Credit scores have everything to do with insurance and are used for determining your rates. Other factors also contribute, but credit scores are the most significant after your driving record.