Auto Insurance Myths
By: Good2GoPublished: January 6, 2016
The world of auto insurance can be difficult to understand, so it makes sense that there is a good deal of misinformation out there. These ideas are spread and blindly accepted as truth. It’s time for us to separate fact from fiction!
Here are some of today’s most common auto insurance myths:
The color of your vehicle matters.
Many people still believe that insuring a red car will be more expensive than insuring that same car but in a different color. This couldn’t be any further from the truth. Insurers will, however, be paying attention to the make, model, and year of your car.
Credit scores and insurance rates aren’t linked.
In most states, insurers will look at your credit score to determine your rates. Credit scores have been showed to be accurate predictors of accident potential. For many drivers, the use of credit scores has actually saved them money!
Insurance companies will pay off all loans on a totaled car.
Auto insurance is intended to cover the fair market value of a car. Unfortunately, sometimes the value of the vehicle is less than the car owner’s loan amount. In that scenario the driver will be responsible for the remaining loan balance.
Property within the car is also covered.
A lot of folks think their car insurance policy will cover damage to the items in their car, but that is not the case. Any expensive objects in the car, such as clothing or electronics, are usually covered under a homeowner or tenant’s policy.
Insurance companies can randomly cancel policies.
A car insurance policy cannot be canceled by the insurer mid-term unless there is fraudulent activity or the policyholder has failed to pay their premiums. However, insurers can decide not to renew coverage once the original term has ended.
There is a lot of noise swirling around the auto insurance market, so it’s important that drivers know all the facts. One thing that is undisputable is that Good2Go Auto Insurance offers minimum coverage to drivers in need. In case this list wasn’t comprehensive enough, just give a Good2Go representative a call at +1 (877) 200-9912 where you can ask any questions regarding coverage options and receive your free quote. Another option to receive a free quote is to visit Good2Go’s website by clicking the link here: https://www.good2go.com/