Interesting Car Insurance Facts You Must Know
Updated: Dec 6, 2021
How many times have you found yourself in a party where you need to start a conversation with someone you don’t know just to break the ice? Usually, complaints about car insurance companies are an easy topic to share. Not only will everyone be able to relate to it, but it seems as if everyone has something to say about their car insurance company.
So before you complain even more, here are some interesting car insurance facts that you must know:
• Buying a new car will increase the insurance premium that you have to pay. This is not because you can afford it, but because the coverage required of the new car that you bought will be higher than your old car. After all, it may take more money to have your new car repaired or replaced compared to the old model you were driving.
• Travellers insurance used to the car insurance policy that people buy for themselves. It was called travelers insurance precisely because people used to use their cars for long travels. Back then, people used mass transport to get them to work.
• Internet quotes have made it possible for insurance companies to offer their car insurance policies at a lower rate. Since it has become much easier for people to get quotes from various companies for comparison, insurance companies wanted to make sure that you end up buying from them and not from their competitors.
• Did you know that drivers who declare that they are married are less likely to be charged with higher insurance premiums? Studies show that married drivers have fewer accidents because they become more responsible while on the road; thus, insurance companies offer discounts for married couples due to lower risk of accidents and claims.
• Credit rating has a significant effect on car insurance rates too. As much as it affects the loans that you apply for, your credit score also affects the insurance rates you are given as well as the premiums you are required to pay.
Perhaps the only sad truth is that most of those who complain about their car insurance provider are those who didn’t take a minute to read through the insurance policy before they made the purchase. It was convenient to renew their policy quickly and so they went through it without properly educating themselves of the coverage. They didn’t think it will matter until they need to file a claim.
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