There are a lot of factors to consider when purchasing auto insurance. These factors include your driving history and anything else that may impact the cost of your coverage. The problem arises when you try to determine exactly what factors impact the cost of coverage and what do not. You can start by taking a closer look at some auto insurance myths.
Myth #1: There is no Point in Shopping For Auto Insurance Until Your Policy Expires
It is a common misconception that you are bound to your auto insurance policy for the policy's full term. Truthfully, you can cancel your policy at any time. The only thing you will have to do is pay cancellation fee which is usually a small percentage of the total amount you would have paid if you carried the policy to full term.
Basically, shopping around for better insurance is never a bad idea. You just have to decide if paying the cancellation fee and switching is better for your wallet than keeping the policy you have until it expires.
Myth #2: You Can't Let People Borrow Your Car
Another common misconception is that your vehicle will not be covered if you let someone borrow it and they wreck it. Truthfully, collision and comprehensive coverage will protect your vehicle from damage regardless of who was driving it. The only exception would be if you let someone who did not have a license drive your vehicle.
Myth #3: The Older You Get, The Cheaper Your Car Insurance Gets
While most auto insurance providers do utilize your age to determine your insurance coverage cost, there are no hard and fast rules in regards to how your age directly impacts your insurance. In fact, most insurance providers care more about your driving history than your age. A 40 year old who has had five accidents in the last three years is likely to have a more expensive policy than a 25 year old who has never had an accident because the older driver is seen as more of a liability based on his or her driving record alone.
Myth #4: The Color Will Impact The Price
Your auto insurance provider really could care less what color your car is. Driving a purple car is not any safer than driving a yellow car or a green car. Your insurer does care what type of car you drive, but that is because some vehicles have better safety ratings than others. The make, model, type, engine size, and age will be used to determine coverage cost, but definitely not the color.
As you can see, there is a lot of information to wade through when purchasing auto insurance. The best thing you can do for yourself is to always shop around and get several quotes before making a decision.
To learn more, contact an auto insurance agency like Affordable Insurance.