Car insurance is a necessary expense and can come along with high premiums for some high-risk drivers. As a result, it's no surprise that there are a lot of myths about saving money on car insurance. Take a look at a few of the most prevailing myths about saving money on auto insurance, as well as the actual facts every vehicle owner should know.
Myth #1: You don't need to pay for car insurance if you have a good driving record.
Even if you're a safe driver, you could still be involved in an accident. And if you don't have car insurance, you could be held personally liable for the damages or even sued by the other driver in some states.
Myth #2: You can save money by buying car insurance from a company that doesn't have a lot of customers.
This myth is based on the idea that smaller companies have lower overhead costs, so they can offer lower rates. However, this isn't always the case. In fact, some smaller companies may charge higher rates because they have less annual revenue and more ability to pass cost savings onto customers.
Myth #3: You can save money by buying car insurance with a high deductible.
Choosing a higher deductible means you'll have to upfront amounts before insurance kicks in if you're in an accident. However, it can also lower your monthly premiums. So, whether or not a high deductible is right for you depends on your budget and your risk tolerance. Opting for a higher deductible could easily cost you more money out of pocket if you are ever involved in an accident.
Myth #4: You can save money by buying car insurance from a different state.
This myth is based on the idea that car insurance rates vary from state to state. However, it's important to remember that you'll still have to comply with the laws of the state where you live. So, if you buy car insurance from another state, you may still have to pay higher rates if you're caught driving without insurance.
Myth #5: You can save money by being dishonest on your car insurance application.
This is one of the most dangerous car insurance myths. Lying on your application can void your policy, leaving you without coverage if you're in an accident. It can also result in fines and other penalties. For example, if you state you have not been in an accident in recent years but you have, the insurance company could choose to drop your coverage when they find out.
For more information on car insurance, contact a company near you.Share