Myths and truths about your auto insurance

Many things are said about car insurance, many of them true, but not so much. The important thing is to be able to differentiate between truths and myths, always seeking the right advice.

My car insurance also covers me when I drive while doing my own business

That is a myth! Your auto insurance is designed to cover you and your private vehicle in common situations, such as driving for pleasure or entertainment, trips to work or study center, etc. You should know that if you have a business and use your private vehicle to carry out activities related to your business, your auto coverage will not be able to protect you in case of an accident. To do this, you must include a special coverage for commercial auto. If you have your own business, consult with your trusted insurance advisor to find out about the best option for you.you.

My financial status does not affect the cost of my auto insurance

This is a statement that is not entirely true either. Although insurance companies are not going to establish the cost of your policy based on the sum of your savings, they will do so based on your credit status, that is, the way you have handled yourself financially to comply and pay. your debts A credit record in the red or in deficit can mean a risk factor for insurance companies that, later, would be reflected in the cost of insurance. If we have some outstanding debts, and we want to reduce our car insurance expenses, it is a good idea to start meeting all our obligations as soon as possible.

For teenagers car insurance is optional

That statement is completely false. In the United States, auto insurance is a legal obligation for all drivers. Teenage drivers, those of advanced age, those who have little experience or those who have an infraction (A DUI, for example) are considered high-risk drivers and, on the contrary, the cost of the policy is usually highest.

Minimum coverage insurance gives me all the protection I need

It is not correct, the minimum coverage insurance or also known as “Liability” is the minimum required by law to cover the insured in case of causing damage to third parties. Coverage is minimal and scope limited. To have greater protection in cases of accidents, it is highly recommended to include in your policy greater coverage or additional protection, such as “uninsured driver coverage”, “Coverage against theft” among other coverages.

If I have caused one or more accidents, my insurance rates will not increase in price

Beware of that belief! It is not correct, since insurance companies update the information of their policyholders from time to time and if you have been to blame for one or more traffic accidents, your insurance rates may increase. Remember, a clean driving record will always ensure you better rates, a history with tickets or accidents can harm your economy. Don’t be fooled by the myths! If you want to be informed and make the best decisions, always remember to seek assistance and help from qualified auto insurance professionals. And if you are looking for the best advice and the lowest prices on the market, don’t think twice! Contact UWORLDINSURANCE today and discover everything we can do for your safety and economy