With the change of prices, there are years when insurance companies tend to increase their premiums or rates causing pain and additional debts for consumers. There are days however wherein the rates drop or decrease, in which a lot of insurance companies take advantage of to share their best prices and gain more clients. Because of internet services offered by some companies such and other agencies, clients can now compare rates online and read of their policies through surfing the internet. Before choosing your insurance company and applying for coverage, here are some myths you should forget if you’re looking into discounts for rates.
Myth No. 1 – Insurance costs increase while you get older
Fact is, it’s quite contrary to this popular belief. A reduced rate or discounted rate can be applied by older people. Depending on location, percentage of discount may vary and may even range up to 10 percent less fees. Retired citizens may also avail of this discount. Keep in mind though that it all depends on the location and insurance company policies.
Myth No. 2 – You only should only buy the minimum type of insurance required False yet again. The government may prescribe coverage policies that are of standard coverage, but for your own protection and safety, opt for the comprehensive one. Auto insurance policies are purchased not because they are mandated, but because you need it. Accidents may happen and if you purchase cheap policies then you might end up shedding a lot more money for repairs instead of saving. Ask your agent additional policies you may purchase such as collision insurance so as you are prepared for the worst.
Myth No. 3 – The color of your car plays a big part on the insurance rate
You see, it will be hard to make clients understand what kind of basis or proof there is for insurances to be rated based on colors. There are more virtual factors that are considered by insurance companies such as model type, year released, market price and specifications of the car, but color does not affect the rates posted by the insurer. If you’re thinking of buying a car that is color red, but you are worried about increased rates, just buy it because this element is not part of the insurer’s weighing process.
Myth No. 4 – Your record of credit has nothing to do with insurances
Wrong. An indication that you are a trusted buyer is the line of credit presented. When credit scores are accessed by the insurance company, chances are people who apply for insurances with a clean credit score gets the lower rates. If you pay your bills and obligations on time, then renewal and updating of your auto insurance policy will be much easier, faster and of course cheaper.
If you are worried about the above-mentioned items and you are planning on purchasing a car and an auto insurance Barrie, remove these myths from your mind. There are a variety of factors used by insurance companies to determine your rate, but these four are not in that list of factors. Forget these myths from car insurance and purchase the color you like, even if you’re old, and be ready for inflated rates if your credit score is not that clean or presentable. Auto insurance is your best investment- for safety and for peace of mind.
