7 Absolutely Critical Car Insurance Facts
1. Myth: You have to pay a lot for the best coverage
The fact of the matter is, the little extra coverages can save you a ton of money in the long-run without raising your premiums much. Things like roadside assistance, gap coverage, and even comprehensive coverage are very inexpensive compared to getting a lot of collision coverage.
Minimizing your risk in these areas may make more sense if you're on a tight budget.
2. Myth: All car insurance is basically the same
Car insurance policies and prices actually vary a lot company to company. It is one of the most competitive fields around, so shopping naturally brings you competitive prices. However, calling company to company can take hours without yielding results.
The most effective and efficient way to shop around is by comparing car insurance quotes right on this site!
3. Fact: Expired policies will cost you big
An expired or "lapsed" policy will end up costing you. People who are presently insured seem like a smaller risk to insurers, so even though it might not seem smart to pay two car insurance providers for the same month, if you are switching providers, make sure you get coverage from the new insurance company before your current policy runs out.
If you let your car insurance lapse, you will end up paying more per month.
4. Myth: New vehicles always cost more than used vehicles to insure
This is often true, but it is much closer than people think. The reason is that new vehicles have some extremely good safety features that older cars just don't have. Get these on your new automobile and you'll get a better deal on car insurance.
5. Fact: Lowering your credit score will save you on car insurance
This is absolutely true. Car insurance companies use credit score to evaluate risk, so lower your score and save money. Get a free credit report, sort out any errors, and try to pay your credit cards down to 1/3 of the limit.
6. Myth: Red cars cost more to insure
If you are asked about your car color, you're being scammed. A red car may get you pulled over more, but it won't cost you in car insurance.
7. Fact: Certain traffic violations (tickets) will increase your car insurance premiums
This is true, a little speeding ticket won't do much damage. What you have to worry about are the violations that put points on your record.