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Three Auto Insurance Myths Revealed

Updated: Dec 6, 2021

How much do you know about auto insurance? Apart from the fact that it is something that the government requires from every car owner, it also means additional cost to your monthly expenses. Perhaps the only reason why most car owners would go for the cheapest insurance is because they know very little about how important it is to buy the right one.

So before you end up buying just any insurance policy, here are three auto insurance myths and the truth behind them:

  • There’s only the need to shop for a new insurance policy when the current one is about to expire. Most people think that when they buy their insurance coverage, they are bound to it for the rest of the year. But in truth, you may cancel the insurance at any time, but subject to fees and other charges by the insurance company. Most of the time, the company charges about 10% of the unused coverage. Make sure to compare potential savings before you make any cancellations and make the switch.

  • The color of the car says a lot about the cost of the insurance policy or so they thought. Whether you choose to own a red, white or a black car, it doesn’t really matter. What really matters to insurance companies is the type and model of car you choose to drive. Driving a sports can could mean higher insurance premium for you every month. The computation of the rate is based on how much the insurance company will need to spend to have the vehicle repaired in case it gets damaged.

  • Older people pay higher insurance. It is true that insurance companies look into the driving records and use it as one of its basis in the computation of the monthly premium, but your age does not matter. Your driving record does. The number of traffic violations that you got throughout the years may pull your insurance premium up, but it is just one of the many other factors that are considered. Some older people with clean driving records pay much less than a newbie in driving who’s got a long list of traffic violations.

When it comes to auto insurance, it can be quite easy to simply believe what we are told. However, when you do your research, you will discover the many different ways you can save on insurance costs.

#AutoInsurance #InsurancePolicy

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