4 Myths about Auto Insurance
In the world of auto insurance, there are a lot of misconceptions floating around out there. Unfortunately, many consumers believe them to be true. Here are four myths about auto insurance, and the real truth behind them:
1. You Should Only Shop Around When Your Current Policy Expires
Why wait to find another, better, cheaper policy when you can do that right now? The sooner you go about shopping around for car insurance Van Nuys, the sooner you can start saving money on your policy!
You might not realize that you’re not actually bound by an auto insurance policy for the full term. You can cancel at any time, subject to any fees that your carrier may require. Compare fees with the potential savings that you would get by switching your car insurance policy.
2. If You Let a Friend Borrow Your Car, It Won’t Be Covered Against Damages
For the most part, this isn’t true. Comprehensive and collision coverage provides protection against damages to your car, no matter who is driving it. However, if this friend of yours has been explicitly excluded from your insurance policy, then the damages would not be covered.
3. Rates Automatically Go Down As Soon As You Turn 25 Years Old
While age is an important factor in pricing models for insurance providers, that doesn’t mean a deduction, is automatic as soon as you reach the 25-year mark. Age is certainly used to predict the odds that you will make a claim.
Even though drivers under the age of 25 are statistically more likely to be in a car accident, every insurance provider will handle the effect of age on the policy’s price differently. Also, there are many other ways to get discounts on your policy, including bundling your property and life insurance policies with your auto insurance policy.
4. Comprehensive Coverage Covers The Theft Of Your Car And Everything That Was In It
Comprehensive coverage will only cover things that are physically attached to your car, including the stereo, GPS system, and so forth. Anything else, like your smartphone or laptop, would not be covered; however, they may be covered under your homeowner’s or renter’s insurance.
Be sure to get all the right information on your auto insurance policy to stay up-to-date!