Car insurance can be perplexing to a lot of drivers. This is why some people will go with whatever their insurance company tells them and agree. But by doing this, they are probably making mistakes that are favorable for the insurance company and not them.
There are also so many myths floating around about car insurance, and you cannot get insurance based on things you’ve heard. If you make decisions based on hearsay, there’s a good chance that you’ll end up either paying more for insurance or have a nasty surprise when the time comes to make a claim. Let’s look at some of the common myths about car insurance and the truth about them.
1. Liability Limits Just a Detail
You must know what the minimum coverage is on your insurance. Any damage that goes above your coverage will have to come out of your pocket, and you have to know how much will be covered if you get involved in a major accident.
The amount of coverage you pick will largely depend on where you live. For example, suppose you live in a crowded area with lots of possibilities for accidents. In that case, it makes sense to take high minimum coverage. But, picking the low coverage could make more sense if you’re in a rural area.
You also have to know what the minimum requirements are in your state. States like North Carolina, for instance, require that you have at least $25,000 of property damage liability, $25,000 of bodily injury liability insurance per person injured, and multiple other minimum requirements. Suppose you want to know more about minimum requirements in the state and car insurance South Carolina costs. In that case, we suggest you check out this article by The Hartford, which discusses the AARP’s South Carolina auto insurance program.
This is one of the oldest and most pervasive myths about car insurance. Many people think buying a red car will increase your insurance premiums, but insurance adjusters are much more sophisticated. They use many different factors to gauge how much a vehicle should cost to ensure that most of them correlate to accident statistics. There was no link established between red cars and accidents, so don’t worry about that.
However, there are tons of seemingly minor or strange things that can have a major effect on your premiums. Being married, for instance, will reduce your insurance costs. Where you park your vehicle and your credit score can also affect your rates. And the horsepower of your vehicle will also have an effect, so if you heard that more powerful vehicles cost more to insure, this is not a myth.
Don’t assume that getting a car with the latest safety features will automatically lower your premiums. For example, getting a Volvo will not ensure you get better rates if you have a horrible driving record since you’ll be the one driving the car. You’d be better off getting driving lessons instead.
Now that you know a bit more about how car insurance works, we hope you’ll be able to pick the right coverage and policy for you. Compare quotes from multiple insurers, and don’t fall into the common traps, so many insurance buyers fall into.