Auto Insurance Myths You Should Avoid Believing

27 November 2018
 Categories: Insurance, Blog

Without adequate insurance on your vehicle, you could be at a far greater risk of suffering devastating financial losses and other liabilities due to being involved in an accident. While insurance will be able to drastically reduce these hazards, individuals are misinformed about the protections their plans provide along with what to expect from insurance coverage through a company like Reinhardt's Insurance Agency.

Myth: Insurance Is Not As Important For Those With Older Vehicles

It is often assumed that having good insurance is only important if you have a nice car. While vehicle damage can be among the most noticeable and obvious consequences of an accident, there are other damages that can also be suffered. You or another victim may require extensive medical treatment, and without adequate insurance, you could be responsible for the full costs of these damages yourself. As a result, you could find yourself paying for the damages of an auto accident for years after the incident. While paying for high-quality insurance on an older automobile may seem unnecessary, the financial protections can make it a wise approach.

Myth: Your Insurance Premiums Will Always Go Down If You Avoid Accidents

While it is true that your vehicle accident history will be one of the deciding factors in your final premium, it is not the only factor considered, and this can result in situations where your insurance rates increase despite you avoiding accidents. In particular, the make and model of your vehicle can dramatically increase the costs of the insurance premiums regardless of accident history. Additionally, a person's credit history can be another important factor due to it being tied to a person's overall decision making and risk-taking tendencies. For these reasons, it is always wise to shop around when getting an insurance policy regardless of whether you have a good driving record.

Myth: You Insurance Agent Will Be Mad At You For Filing A Claim

Unfortunately, individuals will often fail to file claims due to the belief that their insurance agent will be angry with them. However, this is not the case, and individuals should feel free to file any legitimate claims. Additionally, many insurance companies will cancel the policies or reject the claims of individuals that have failed to report accidents or other damages to their vehicles. By promptly acting to report any damages, accidents or vandalism, you will be able to both ensure that your claim is processed as quickly as possible while also avoiding violating the terms of your policy.