5 myths you need to know about car insurance.
Car insurance is something you need if you own and operate a passenger vehicle. It’s required to varying degrees in nearly every state, and you should have it anyway just to be a responsible driver. However, you need to balance your thorough coverage with protecting your financial interests and not overpaying. Knowing the major myths of car insurance helps you be an informed consumer.
Personal insurance covers commercial applications
This was a huge myth among pizza delivery drivers for many years, but many found out the hard way that if they got into an accident while on-duty delivering food or coming back to the restaurant that their insurance policies usually didn’t cover them.
Nowadays, in the so-called gig economy, this applies to not just food-delivery drivers but also rideshare drivers and even people doing grocery shopping. Many of these companies have insurance plans for their drivers, but details can vary from state to state. Make sure you are covered if you start using your own personal vehicle to make any money.
Vehicle color determines insurance rates
You’ll have to input the color of your vehicle for identifying information, but your insurance rates won’t be determined by it. Some people think that certain colors might be more or less likely to be pulled over for speeding. There is actually some research that provides supporting evidence behind that idea. However, no insurance providers will actually make your rates go up or down based on that.
So, go ahead and get whatever color vehicle you want, or repaint your car that particular crayon shade you’ve been dreaming of. You’ll pay for the paint, but the paint won’t cost you in terms of paying more for your car insurance.
They all charge the same
The thought of shopping around multiple insurance providers every six months and repeating the same information over and over might seem nauseating. However, it’s well worth it. Not all car insurance companies charge the same rates for everyone.
Shopping around can wind up leading you to insurance providers that save you money over who you’re currently with. In fact, if you’re looking for car insurance in Utah, you might find it worthwhile to get quotes through a service that runs your information through multiple insurance providers at the same time to save you time.
Your credit score doesn’t matter
There are consumers alive who started getting car insurance when personal credit scores weren’t a factor in your insurance premiums. However, it’s almost always the case now.
Insurance providers assume that someone with a lower credit rating is more likely to be a substandard driver since they’re already less financially responsible than other consumers. Your credit rating isn’t a huge factor in determining your premiums, but it is present. The better your score, the less likely insurance carriers assume you will be to file claims that they might have to pay out.
Getting older means higher rates
Age-related discrimination might be a thing in many parts of society, and that is seriously unfortunate in a nation where the population is getting older and living longer. However, car insurance isn’t necessarily going to cost more just because you get older.
While age-related health decline might make some drivers more prone to accidents, they’re also less likely to even be behind the wheel because of their conditions. Furthermore, older drivers tend to be experienced drivers. Retirees who no longer have to report to a job five times a week naturally log fewer miles, and there are usually discounts for not driving as much. Also, organizational memberships, such as AARP, can qualify for discounts with select carriers.
Know before you buy
Buying car insurance is supposed to protect you, your finances, and your car, but there are pitfalls to avoid. Fortunately, many common myths about car insurance that you might have heard simply don’t apply.
Personal car insurance won’t cover your commercial work, you won’t necessarily pay more for getting older, and it’s not true that they all charge the same rates. Also, your vehicle’s current color doesn’t determine your rates, but your credit rating certainly can. By understanding these factors, and shopping around for the best deals available to you, you can retain optimal insurance for your vehicle without paying more than you have to.