Informed Drivers Pay less For Auto insurance

Have you ever heard the expression, “knowledge is power”? Well, when it comes to auto insurance the more you know may help you pay less. In a survey conducted by The Zebra in 2018, drivers were asked some basic information about auto insurance. Those who believed it is a scam to buy insurance or unnecessary also had little knowledge of how insurance works and ended up paying more. Meanwhile, Sed up paying less for the most part. The goal of this post will be to inform drivers about common myths regarding car insurance, and what information can help drivers lock in low auto insurance premiums. 

Common Myths That Hurt Drivers

Although there is plenty of information on the internet, not all of it is good or reliable. Some people truly believe car insurance is a scam, perhaps due to some bad information told to them. According to the survey, 33% of those who thought insurance to be a scam had no idea it is required by law in most states. But car insurance is far from a scam, in fact in most states, laws dictate that drivers carry it. Any driver caught without the mandatory minimum liability could find themselves facing harsh penalties. On top of that, a driver could lose the chance to find a low auto insurance premium due to a lack of insurance history. 

Permanent Record

Another common myth that uninformed drivers believe deals with their driving record and/or history. Some drivers have a misconception about their record, they believe it is permanent. According to the survey, 69% of respondents who believed insurance to be a scam also believed their records are permanent. However, most violations and accidents that drivers cause are no longer usable to companies after about 3 years. Yes, what is on a driver’s record could keep them from low auto insurance premiums, but it does not last forever. And drivers have options for lowering their premiums by taking approved classes or increasing their credit score.

Your driving record is not permanent, which means low auto insurance premium can not be kept from you forever

It Works Even If You Never Use It

One of the strangest misunderstandings about car insurance comes from those who’ve recently filed a claim. According to the survey, 40% of those who filed a claim recently did not understand why they need insurance. In other words, respondents involved in a recent accident and who filed a claim did not understand what insurance did for them. If you find yourself questioning why you have a policy, understand that it is in your best interest. Depending on what type of coverage you go with, buying a policy could help you avoid large repair or medical bills. Even small accidents could cost you a fortune without insurance. So even if you do not fully understand what insurance does for you, it could keep you from having to pay out of pocket for damages. 

Take-Home Points

  • Auto Insurance is not a scam, and in fact, is a requirement to operate a vehicle in most states
  • Your driving record is not permanent
  • Insurance companies can only see violations or accidents on your record dating back 3 years usually. 
  • You have some control over how much you pay for auto insurance
  • Even if you do not understand insurance, it will work when you need it too
  • Whether you’re looking for liability or full coverage, knowing a thing or two about insurance could help you lock in a low auto insurance premium.