3 Auto Insurance Myths Debunked
A savvy consumer is one that knows the ins and outs of what they are purchasing before they make a commitment. Unfortunately, the world of auto insurance can be a bit mystifying. It is also important to note that in relation to vehicle repairs, car insurance providers are essential for accidents. From common misconceptions to policies that might be hidden by unscrupulous insurance agents, there is a lot that you might not know about – or myths that you might believe to be the truth. In this article, we will tackle three of the most common auto insurance myths. Hopefully, this information will help you to make the best decision about your own coverage. This also applies to commercial insurance for van drivers.
Myth #1: You Can Only Shop Around When Your Current Policy Has Expired
Your insurance company may have given you the impression that you cannot cancel your policy with them until the term – usually six to twelve months of coverage – is over. This is simply false. You can cancel your policy with your insurance provider at any time, though you may be subjected to fees as determined by the policy provider. Before you switch, make sure that the fees you’d be paying do not exceed what you would be saving by switching before the end of your policy’s term.
Myth #2: If Someone Else Borrows Your Car, it Will Not be Covered if Damaged
Comprehensive coverage and collision insurance safeguard vehicle owners against this exact scenario. If your friend, for example, borrows your car and gets into an accident, your insurance policy will kick in and coverage will remain. The only time where this is not to be the case is if that friend is explicitly excluded from your policy.
So, your insurance policy will remain in effect even when a friend drives your car. This also means that if your friend gets into an accident while behind the wheel, your insurance premiums are likely to increase – just as if you had gotten into an accident while driving your own car.
Myth #3: You Automatically Pay Less for Insurance Once You Are 25
Generally speaking, individuals under the age of 25 are more expensive to insure. However, different insurance providers will have different policies about how to approach the subject of age. Some companies give a price break at 21, others at 30. While 25 years old is the general rule to go by, don’t count on your insurance following this common practice. They may offer a price break earlier or later than age 25.