With so many options and carriers for your Florida car insurance needs, it can be hard to distinguish who to trust when it comes to buying an affordable auto insurance policy. Here are 4 common auto insurance myths.
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You can only shop for car insurance when your current policy expires.
Many consumers don’t realize that they aren’t bound to their auto insurance coverage for the full term (ie – 6/12 months). The insured can cancel at any time, sometimes subject to fees that vary by carrier. In many cases the carrier will charge a 10% fee on any unused premium. As a simple example, if you cancel after 3 months of coverage on a $600, 6-month car insurance policy, then you may be subject to a $30 fee. You should compare any fees with the potential savings you could get by switching your auto insurance coverage.
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Working with a direct company is always cheaper than going through a local agent.
While it’s true that direct companies save money on costs by not incurring agent commission fees, this does not necessarily mean the savings will be passed on to you. Most direct auto insurance carriers will use those savings to spend more on marketing their brand and product. Without the benefit of local agents marketing for them, direct carriers may need to spend a bit extra to create awareness for their brand. In addition, pricing algorithms of car insurance policies are extremely dynamic and, as a result, there will be a large range in price for any single individual. As long as you are comfortable working with both a local agent and a direct carrier, it is always best to shop all available policies. Anderson & Associates in Manatee County offers you the ability to shop both the type of coverage while indicating a preference in carrier if you have one.
Further, if you aren’t happy with the rates while working with a direct carrier only, they won’t have other options to offer you. Local agents can shop with different carriers and coverages, giving you a real selection for affordable car insurance coverage.
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If your friend borrows your car, then your vehicle is not covered against damages.
In most cases, this is simply not true. Comprehensive and collision coverage will provide protection against any damages to your vehicle, regardless of the driver. However, if you explicitly excluded this friend from your auto insurance policy, then damages would not be covered. You should also note that any claims made could result in an increase in your car insurance premiums. The agents at Anderson & Associates help to educate you about the various types of coverage to make sure that you select the one that best fits your needs.
For more information on your coverage when a friend drives your car, here is a recent post outlining the subject.
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Auto insurance rates automatically go down when you turn 25.
Yes, age is an important variable in pricing models. Like any other variable in the pricing model, age is used to predict the likelihood that the insured will make a claim. While people under 25 are statistically more likely to get into an accident, each company handles the impact of age on the price of the policy differently. There is no hard and fast rule that once you turn 25, the price of your car insurance will decrease. Some carriers may offer a pricing break at 21, 23, or 30. There are a variety of other ways to receive discounts on your policy such as bundling your homeowners or renters insurance policy with your auto coverage, paying your premium in full, or even choosing to receive paperless billing. It is important to check with each insurer on discounts you can qualify for when shopping for your new policy.
There are many myths about shopping for and choosing your auto insurance. It’s best to speak with an experienced and licensed auto insurance agent to get the answers to questions that you have. Our agents at Anderson & Associates are ready to help you today, so give us a call and we’ll discuss what options are available to best fit your auto insurance needs.
