Many drivers are amazed when they discover they do not have the right auto insurance coverage for their needs. Their misconceptions about coverage and options such as policy add-ons could have been avoided if they had taken the time to speak with auto insurance agents. It is customary for individuals to have an agent they work closely with for their needs. However, some individuals may skip this step assuming that it is optional. It is also possible for insurance needs to change when situations such as buying another vehicle occur. The following points highlight a few common misconceptions drivers make.
Insurance Premiums Are Higher for Older Individuals
It is possible for an older individual who has not maintained a good driving record to experience higher rates. However, drivers who have exemplified good driving behaviors likely will not have this occur due to getting older. Some insurance companies may also consider how long it has been since a driver was involved in at-fault car accidents, speeding violations, or DUIs. They have their own algorithms, which is why it is a good idea to contact an auto agent to discuss any higher rates. It could be a matter of raised rates for all policyholders due to economic issues such as a recession rather than the age of the driver.
Not Reporting an Auto Accident Protects Against Raised Insurance Rates
This is a bad idea for a lot of reasons. It may lead to legal issues if the other driver involved chooses to file a police report and blames the other driver. If they decide to notify their insurance company of the accident, it can cause issues for the other driver. Some insurance companies have strict policies requiring policyholders to report all accidents. Failure to report one could lead to a policyholder not being eligible for renewal at the end of their insurance term. Choosing to handle an accident this way could result in rate increases that may not have happened if the driver had followed the proper protocols and reported the incident.
An auto insurance agent is a valuable resource for drivers to use when they are unsure about coverage. They can consult and ensure that drivers understand what their policies cover. If drivers have expectations or needs such as having access to rental cars, agents can ensure that they explain add-ons. They can also explain complex issues such as what occurs when an uninsured motorist is at fault.
Contact a local car insurance agent to learn more.