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Busting the Myths Surrounding Car Insurance

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When trying to find out the best car insurance quotes, it has been noticed that many of the car owners, aspiring to purchase to take an insurance for their vehicle come across several myths, which is said to surround car insurance. Knowing them is important, so that it becomes possible to know what is right and wrong to be avoided.

Some commonly known car insurance myths

  1. Myth #1 – Higher premium rates to be paid by older drivers: It is not actually true for majority of the part. Even though the premium for older drives is generally lower, it is completely dependent upon their individual driving history. For instance, in case, a driver of age 55 years and above receives various moving violations with time, then this driver might find the rates to have increased over time, and not a decreasing one with every passing year.
  2. Myth #2 – The place of residence does not have any impact on Coverage: It is false unfortunately. Although where the person resides might not be necessarily his/her choice, the car insurance does have a great impact. Those living in the rural regions tend to pay much lesser when compared to those living in the city. This is because, city dwellers can be termed at higher risk to make claims, due to theft, damage and accidents.
  3. Myth #3 – If car is vandalized, stolen or damaged by flood, fire, wind or hail, the person is covered: It is also false unfortunately. What many do not realize there is no comprehensive basic coverage. In case, the car gets damaged like mentioned above, then it is the owner who is responsible for making expenses on its repair. But if the vehicle is leased, it could be that the person is already paying for collision and comprehensive coverage.
  4. Myth #4 – There is no impact of credit on the premium rate: It is not true, since the car insurance rate is very much impacted by the person’s credit, however, it is just in relation to his insurance score that is credit base, which is termed to be a snapshot basically as to how the person can manage his financial affairs, thereby providing insurers with key insight as to how much risk he is. With many people having good credit, the rate is sure not to be negatively affected.
  5. Myth #5 – The Car’s color does make a huge difference: The car’s color, contrary to all popular believe is not known to make any impact upon the auto insurance rates. For instance, there are many drivers who tend to assume that black or red cars may contribute towards higher premiums. However, the truth can be stated as providers are least concerned about the car’s color. What matters to them is the car’s make, model, year of make, engine style, body style, the vehicle’s age, record and  age of driver. When it comes to considering driving behavior, the insurance providers do factor in the person’s accumulated points with regards to violations at the time of deciding the rates.

Checking out paramount car insurance site can help the person to know the details.

Conclusion: There are some popular myths about car insurance which are partially or fully not true. Knowing them can help the person to avoid embarrassing situation when availing car insurance quotes.

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