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Disregarding Common Insurance Myths

Insurance is an important aspect in every individual’s life, which is why it is important to dispel some of the common myths that surround insurance. One cannot fathom as to why some of these myths actually started in the first place or were able to perpetuate for so long. If you believe in some of the myths, you have been misinformed and now it is time to disregard these myths for they can cost you a large amount of money in the long run.

There is this common myth that buying from an insurance agent is perhaps the best way to go. However, you need to remember that you should not rely on one agent and if you want to get the price, take quotes from the agents that represent different companies. When you are buying your car insurance, you need to know that you should look on your own for insurance or you can ask an independent agent who does not work for a specific company recommended tips from Cheap KIA Cars for Sale 

It has also been identified that red cars tend to have a high price for insurance. However, remember that this myth is highly silly because the color of the car does not have any effect on the amount of premium that you have to pay. Generally, the model, the make, the body type, the age and the engine size amongst other factors has a place to play.  

Another myth that has been perpetuated is that if you want to keep the insurance premium to the same rate, then you should not report an accident. However, if there is an accident with another driver, then that driver may actually file a claim for injuries or damage. It will only take a short while for the injured party’s insurance company to contact your insurance company, which means that the premiums will definitely increase. Furthermore, if you were issued a ticket or any accident, then it will show in your driving record, which the insurance company can actually have access to.  

It has also been stated that if your car has been completely lost due to an accident, then the loan for the car would also be paid for by the insurance company. However, this is not the case. Auto insurance aims to pay the fair market value of the car. Generally, it considers the original cost of the car minus the amount of depreciation. The owner remains responsible for the difference.  

People tend to believe that as you grow older, the premiums tend to increase since older people are likely to have more crashes because of slower reflexes and poor eyesight. However, this is actually the opposite because drivers that are over the age of 55 qualify for premiums which are low in price. People have also been led to believe that credit ratings do not determine your premiums, which is not true because insurance companies can see your credit ratings to set your rates. This is because it helps them in determining the accident risk.

Therefore, these common myths by Best Car Dealerships In Houston have infiltrated into the minds of the people so it is important to disregard these myths when you are searching for insurance companies, or when you want to file a claim.

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