|
There is a lot of misinformation about car insurance floating around. Here we bust five common car insurance myths. Myth #1: Where You Live Has No Impact on Coverage Unfortunately, this is false. While where you live may not necessarily be your choice, it does have an impact on your car insurance. People who live in rural areas are likely to pay less than those who live in the city, as city dwellers are at a higher risk for claims due to more people and increased likelihood of theft. Myth #2: Older Drivers Have Higher Rates For the most part, this is not true. The thing to keep in mind when it comes to car insurance is that every driver is different. Although rates for drivers older than the age of 25 are generally lower, that is entirely dependent upon driving history. For example, if a 55-year-old driver receives numerous moving violations over the course of several years then that driver may find their rates increase over time, as opposed to decreasing with each passing year. Myth #3: You're Covered if Your Car is Stolen, Vandalized, Damaged by Hail, Wind, Fire or Flood Unfortunately, this is also false. What most people don't realize is that basic coverage isn't comprehensive. As a result, if your car is stolen, vandalized, or damaged by the elements, you may be held responsible for out-of-pocket repair expenses for your vehicle. However, if you're leasing a vehicle, you may already be paying for comprehensive and collision coverage, as it is often a condition of leasing. Myth #4: Your Credit Has No Impact on Your Rate This is absolutely false. Your credit does impact your car insurance rate, but only in relation to your credit-based insurance score. This credit-based score, which is basically a snapshot of how you manage your financial affairs, gives insurers key insight into how much of a risk you are. Bear in mind that since most people have pretty good credit, the likelihood of having a credit-based insurance score negatively affect your rate is highly unlikely. Myth #5: The Color of Your Car Makes a Difference Contrary to popular belief, the color of your car does not have any impact on the price of your car insurance. For example, many drivers think that red cars or black cars will contribute to higher premiums, but the truth is that providers aren't concerned about the color of the car at all. Insurers are more interested in other things such as make and model, year and body style, engine style, the age of the vehicle, and the age and record of the driver. With respect to driving behavior, insurers factor in your accumulated points for moving violations when determining your rates, which is important to note. To learn more about their options for car insurance, west Bloomfield, MI residents should visit http://www.philkleininsurance.com/automobile/default.aspx.
Related Articles -
car, insurance, west, bloomfield, mi,
| 
