4 Common Car Insurance Misconceptions
Posted on: 30 June 2019
Having the right auto insurance coverage can give you added peace of mind while you're behind the wheel. Unfortunately, there's a lot of misinformation out there about auto insurance coverage that could lead you to choosing the wrong policy or making other common mistakes. By being aware of some of these common misconceptions, you can stay better informed when it comes to your coverage.
Getting a Quote Will Hurt Your Credit Score
Shopping around for car insurance quotes is a great way to make sure you're getting the best deal on your coverage. All too often, however, people will be hesitant to request quotes from other insurance companies because they're worried that this will harm their credit score. In reality, requesting an auto insurance quote doesn't always require your credit score to be run. Even if it does, these are considered "soft" credit inquiries, and they shouldn't impact your score at all.
Filing a Claim Will Increase Your Rates
Another mistake some policy holders make is that of not reporting an accident or other incident because they're worried that their insurance company will end up increasing their rates if they do. In most cases, you won't be penalized if this is your first claim in an extended period of time or if you haven't had a major claim in the past few years. Some insurance carriers even offer accident forgiveness, where your first claim due to an accident is guaranteed not to impact your premium.
State-Minimum Coverage is All You Need
State-minimum coverage refers to the amount of auto insurance coverage legally required by your state. It generally includes coverage for bodily injury and property damage. However, this may not be the only coverage you're required to have. If your car is financed or leased, your lender will likely require you to carry comprehensive and collision coverage as well. Be sure to check your lending contract to find out exactly how much coverage you're required to have by your lender.
A Short Lapse in Coverage Isn't a Big Deal
Even a short lapse in coverage (24 hours or less) could be reported by your insurance carrier to your state's department of motor vehicles, which could result in penalties and difficulties reinstating your policy. Make sure you carry coverage on your vehicle at all times. Many people choose to set their insurance payments up for auto-renew and auto-pay to avoid an accidental lapse.
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