If you've recently purchased your first car, need to add a new driver to your existing policy, or simply want to shop around for a better rate, chances are that you've done your research about different types of automobile insurance and insurance providers. Unfortunately, you might have also heard or read information about automobile insurance that isn't true and, in some cases, could impact you financially if you are ever involved in an accident.
Learn about a few of these common automobile insurance myths and misconceptions you shouldn't believe.
An Elderly Driver Always Pays More for Car Insurance
As a person ages, their eyesight often becomes worse and their reflexes less sharp, and they will pay more for car insurance because they are considered a liability to insurance providers. However, many insurance companies provide coverage discounts to their older drivers, especially those that haven't had an accident for several years.
For example, older drivers might qualify for a lower-mileage discount. Elderly drivers often get behind the wheel less often, which lowers their risk of accidents and puts less mileage and wear on their vehicle. Membership in certain senior organizations can also lower an elderly driver's monthly premiums
To qualify for some discounts or to receive a separate discount, some insurers require older drivers to pass a defensive driving course. The course will often feature a written test and a driving course that tests the senior's ability to react to dangerous situations.
So while elderly drivers may pay more for car insurance, this is not always the case.
My Car's Color Impacts My Insurance Rates
If you've always dreamed of owning a little red sports car, you might settle for a more sensible color because of a common misconception: the color of vehicle you choose will impact the cost of car insurance. However, this is simply not true.
The factors that do impact how much you will pay each month for your vehicle insurance include:
- The driver's age
- The driver's credit score
- The driver's location
- The driver's experience behind the wheel
- The driver's gender
- The driver's marital status
Additionally, the number of years between claims, the type of coverage the driver has, and any available discounts through the provider also impact the cost of vehicle insurance. For example, some insurance companies provide discounts if the customer pays online, schedules their payments, or owns a car with certain anti-theft features.
I Don't Need a Separate Policy for My Business Car
If you use your car for business purposes, such as for a ride-sharing service or as a delivery person, your personal vehicle insurance won't cover your expenses if you are involved in an accident. Unfortunately, many drivers are also independent contractors, which means that their employer is not liable for any automobile accidents, including injuries the drivers suffer.
Purchasing a separate business car insurance policy is the best way to protect yourself. If your teen driver delivers pizza to make extra money, ask your insurance provider how to add business insurance to your existing policy.
A Single Traffic Tickets Will Make My Premiums Much Higher
If you've ever been pulled over by the police, you know how stressful the experience can be, even if it is a minor traffic stop. Once the police officer drives away and your nerves settle, your next thought is how much more you will need to pay each month because of a simple mistake. Contact your insurance provider and discuss how the ticket will impact your monthly rates.
If the traffic stop was minor, your insurance premiums may not be any costlier. If your insurance rates do go up, it will be by a small amount. After some time passes and no new incidents occur, ask your insurance provider about lowering your rates.
My Insurance Provider Can Drop Me Without Notice
Finally, if you are involved in an extensive automobile accident and your insurance company will need to cover thousands of dollars in medical bills and auto repairs, you might be afraid you will get a letter or phone call saying you no longer have coverage. As long as you are paying your premiums on time, your auto insurance provider cannot simply drop your coverage out of the blue.
However, if your premiums are not current and you are in an accident, you might not be covered. Paying your premiums on time and in full every month, six months, or once a year is critical to ensure you stay protected. If you are paying your premiums on time, your auto insurance provider can only end your coverage once your policy period has ended.
From the color of your car impacting your rates to the idea that your provider can cancel your policy without warning, when it comes to purchasing and maintaining automobile insurance, there are several common myths you simply shouldn't believe. If you have any more questions, do not hesitate to contact the professionals at L.A. Insurance.