Just as there are valid ways to lower auto insurance premiums, there are also many myths that have no bearing on insurance costs. The following exposes eight such myths you should be aware of.
1. Color affects insurance costs: Color makes little difference in premium costs; however, your vehicle’s make, model, age, body type, price and engine size may affect your premiums.
2. Older drivers pay higher rates: Older drivers with good driving records often get discounted rates due to their driving experience.
3. Your credit has no bearing on insurance costs: Your credit rating is an indicator of how well you manage money. Insurers consider this an important factor when determining your premiums.
4. All policies provide the same coverage: There are many different types of coverage and your policy should reflect the type of protection you want and need.
5. Minimum liability insurance is enough: Buying minimum liability coverage holds you responsible to pay for damages that exceed the minimum amount. This poses a risk to your financial assets.
6. Other drivers are covered by their own insurance: In most states, policies follow the vehicle. If other drivers cause an accident when driving your car, your policy is responsible to pay.
7. Military personnel pay higher premiums: Most insurers offer special discounts to drivers in the military, reducing the cost of their premiums.
8. Personal policies include business usage: Vehicles used for business purposes require business auto insurance.
For more information on vehicle insurance in the Texas area, contact Haylow Insurance.