Insurance Research Council (IRC) study shows 1 in 8 chances, the driver at fault in an accident isn't insured. So, they pay damages out-of-their-pocket. This is the reason why having car insurance makes sense. It can help save you from having to shoulder the costs of damages to both you and the other party.
But finding auto insurance can be daunting given the plethora of insurers to choose from. Buying auto insurance becomes more challenging. There are varying misconceptions that arise. As you read, debunk four myths that may be holding back drivers from getting their cars insured.
Red Car Means Higher Insurance Premium
The car color has nothing to do with higher insurance premiums. The truth of the matter is that your insurance provider will not care about car color. Your car insurance depends on several factors. Such as the car's year, make, model, engine size, market value, and possible repair costs.
Another factor is the safety rating of your vehicle and the likelihood of it being stolen. Drivers' info, like the age and driving record, also comes into play. It affects determining your auto insurance premium.
My Credit Score Does Not Impact My Insurance Premium
Definitely a myth. In recent years, car insurers have determined that the higher a driver's credit score, the less likely they'll file a claim. Insurers see drivers with a good credit score as a lower-risk which translates to a lower premium. The better your credit score is, the better will be your insurance rate.
Pay attention to your finances and keep your credit score in check. It will increase your chance of getting better insurance rates. And when you renew or change your coverage.
Having The Minimum Auto Liability Coverage Will Suffice
This is another myth. In the long run, having minimum liability could prove costly. Having the lowest liability limit still means you will still drive. More so, you will have to pay the damages exceeding your policy's limit out of your pocket. If you can dole out the additional cash, you could lose some of your assets.
The Insurance Information Institute recommends buying at least $100,000 for bodily injuries. Another $300,000 for accident coverage.
Driving a Personal Vehicle for Business Purposes is Okay
You may use your vehicle for business purposes. But if you get into an accident, chances are you will not be covered during those trips. If you carry work-related equipment and get stolen or damaged, they will also not be covered.
Personal auto insurance is designed for personal use. If you want to use your vehicle for work purposes, you will need a commercial/business auto plan. That covers your work tools or materials.
Debunking these myths about car insurance can help drivers like you. So get car insurance for your security.
At Black and Associates Insurance, Inc., we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (509) 464-0058. Get your free quote today by CLICKING HERE.
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