The Biggest Myths About Car Insurance

Posted: Friday, May 27th, 2016

After you apply for an auto loan, and before you drive home in your next new or used car, you need to consider your car insurance. Unfortunately, insurance can be a complicated and confusing service, and it can be a run-around to get the best rate on the best insurance plan for your needs. So what is the biggest myth about car insurance? Find out below.

The Biggest Car Insurance Myth

Many people think that any claim will raise your insurance premium. The fact of the matter is that this is a myth, and there is no proof that this is case. When you report an incident to your insurance company your rate might go up, but that report is far from the only component considered when calculating your insurance rate. Reporting a minor incident – especially when you were not at fault! – will almost never have any impact on your premium.

What does have an impact on your insurance premium are these factors:

  1. The severity of the incident will make a huge difference when the insurance company looks at your premium. If it’s a major accident and you are at-fault you’re more likely to get an insurance rate hike. Otherwise, you shouldn’t be worried.
  2. Your driving history has a lot to do with your insurance rate. If you’ve never had an accident before, and now you’re reporting a minor fender bender, then you might not see any change in your rate.
  3. Who is at fault has a huge affect on your insurance claim and subsequent rate changes – if you’re just unlucky, you’re less likely to get a rate hike, while the driver at fault is more likely to see a premium increase.
  4. Policy details sometimes can change whether you can expect a premium increase after an accident. Look for accident forgiveness if you’re shopping for a plan and make sure you read the fine print!

Find Your Next Auto Loan Without Worrying About Car Insurance Myths at Green Light Auto Credit

Contact Green Light Auto Credit online now or call our team of financing experts at (800) 200-5551 for help with any questions about car insurance myths, or if you’re ready to find the right auto loan for your next car purchase. We want to make your auto purchase easy and affordable so you have plenty of room in your budget for car insurance!