Misconceptions About Auto Insurance: Misconception – Insurance Policies Are the Same Across All Carriers

Now there are a few misconceptions about auto insurance. Now many people assume that insurance policies are the same across all carriers. Now this could not be further from the truth. While many carriers offer similar policies. The quality and specifics of the coverage will vary depending on the company. Now for instance, the underwriting experience, the coverage limits, the policy customizations, the premiums, the claims management, the strategy of the insurance carrier just might be completely different from the competitors. This is why it’s so important that your insurance broker me, research all of your insurance options before choosing a carrier. Now treating all insurance companies as the same could mean that you’re paying more for less coverage not to mention a possible bad experience. Another misconception is that your car color determines the price of auto insurance. Now it doesn’t matter if your car is candy apple red, hide in plain sight white or big bird yellow. The color of your car doesn’t actually factor into your auto insurance costs. The price of your policy is based on many factors. Like the car make, the model, the body type, the engine size, the age of the vehicle as well as the car sticker price. The cost to repair it, overall safety record and a likelihood of theft. Insurers also take into account the age driving record and sometimes the credit history of the driver. Another misconception is that the cost of insurance is more as you get older. That’s quite the opposite. In fact, older drivers may be eligible for specific or special discounts. For example, those over 55 years of age can get a reduction in their auto insurance premiums if they successfully complete an accident prevention course for example. I mean those are available through local and state agencies as well as motor clubs like AAA or you know AARP you know places like that. Retirees or those who aren’t employed full-time and therefore who don’t drive a lot, you know they drive a lot less. They may also be eligible for car insurance discount. Now older driver program discounts they vary by state and insurance carriers and of course again the driver’s age. So, if you think you may qualify, check with me and I’ll be able to help you out. Further another misconception about insurance is that your credit score has no effect on your insurance rate. Now your credit-based insurance score which is derived from your credit history may indeed matter. A good credit score demonstrates how well you manage your financial affairs and has been shown to be a good predictor of whether someone is more likely to file an insurance plan. So, many insurance companies take into consideration when you want to purchase when you want to change or renew your auto insurance coverage. Now people with good credit and therefore good insurance course, often end up paying less for insurance.

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