What You Should Know About Auto Insurance

By Compuquotes Team on March 27th, 2008
Auto Insurance

When it comes to auto insurance, there are a number of myths floating around that you will want to avoid. Understanding the difference between myth and fact is very important when it comes to your auto insurance. One common myth is that your insurance should be used every time you get into an accident. The fact of the matter is that auto insurance is designed to protect you from accidents that are catastrophic. If you can pay for the damage without going through a lot of financial headaches, you should do so. If you do not, your insurance premiums will rise, and this can cost you hundreds or even thousands of dollars each year.

It is also important for you to avoid buying insurance that is not necessary. I don't think it is too far fetched to say that there is insurance for almost everything under the sun. You would go bankrupt trying to pay for all the insurance that is offered to you, and many insurance companies are simply looking to make money. Another common auto insurance myth is that companies will higher premiums are generally those that offer better service. The "get what you pay for" quote may not be accurate with auto insurance. For example, it is not necessary for you to have full coverage if you have a used car that is twelve years old. In a situation like this, you should barely have to pay more than $100 per month. If you are paying more than this amount, you are paying too much.

At the same time, it is a bad idea to not have full coverage for a late model vehicle that you're leasing. If you get into an accident, and you only have liability coverage, you will be in a lot of trouble. To shop for the best auto insurance, you must shop around. With tools like the Internet, shopping for car insurance has become easier than ever before. One common issue that is not a myth is higher insurance rates for sports cars versus vehicles which are not sports cars. Because sports cars are manufactured with speed in mind, the people that drive them are expected to go fast. When they go fast, this increases the odds that they will get into an accident.

Insurance companies are well aware of this fact, and they know the probability of getting into an accident with the sports vehicle. Therefore, expect to pay higher premiums if you have a sports car. Another thing that is not a myth is the fact that men tend to have higher insurance premiums than women. Again, insurance companies have done their research, and they know that men tend to take more risks behind the wheel that women. Young adults under the age of 25 can also expect to pay more for car insurance, since studies show that they are much more likely to get into accidents. Understanding the difference between myths and facts will make shopping for auto insurance a lot easier.

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