Car insurance is one of those things that most people just don’t understand. There are so many different types of coverage, deductibles, and discounts that it can be hard to know what you need and what you don’t. Here are ten of the most misunderstood things about car insurance.
Full Coverage If You Have an Older Car:
Many people think that once their car is paid off, they can switch to liability-only coverage and save a lot of money on their premiums. However, this isn’t always the case. If your car is worth more than a few thousand dollars, it’s probably still worth insuring with full coverage.
Credit Score Doesn’t Affect Your Premium:
This is a common misconception. In most states, your credit score is one of the factors that insurers use to determine your premium. So if you have a good credit score, you’re likely to get a better rate.
Rental Car Coverage:
Rental car coverage is one of that optional coverage that you can add to your policy for an extra fee. If you don’t think you’ll ever need to rent a car, you may be tempted to skip this coverage. But it can actually be a lifesaver if you have an accident and need a rental car while your own car is being repaired. How to get cheap car Insurance? There are a number of ways to get cheap car insurance. One way is to shop around and compare rates from different companies. Another way is to get a policy with a high deductible.
Cover Your Friend’s Damages:
If you lend your car to a friend and they get into an accident, your insurance company will usually cover the damages. However, there are some exceptions. For example, if your friend is a habitual offender or if you knew they were going to use your car for an illegal purpose, your insurer may refuse to pay.
Have an Accident:
This is another common misconception. In most states, your premium will go up after you have an accident, regardless of who was at fault. The amount it will go up depends on a number of factors, including the severity of the accident and your insurer’s rules.
Car insurance is a complex topic, and there are a lot of misconceptions about it. If you’re unsure about anything, be sure to ask your insurer. They can help you understand your policy and make sure you’re getting the coverage you need.