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With so much information across the internet about auto insurance, it is hard to weed out misleading information from the facts. Myths aside, the process of buying a car insurance policy can be daunting especially for first-time buyers in Newark, NJ. We debunk the 5 most common auto insurance myths:-
Your credit rating has no effect on your premium amounts
Most insurance companies refer to your credit history when determining your premium rates. A suitable credit rating shows that you are able to manage your financial affairs well and less likely to file for an insurance claim.
Your gender does not count when it comes to your premium rates
More often than not, women tend to pay lower insurance rates than men. This is because they are considered safer drivers. That being said, your driving record also influences your insurance rates.
Your comprehensive insurance policy covers anything stolen from your car
An auto insurance coverage pays for repairs to damages caused during the vehicle’s break-in rather than the cost of the stolen items. However, a renter’s or homeowner’s insurance policy could compensate for such.
Higher premium rates mean more coverage
Insurance plans differ from one company to another, thus the difference in pricing. As well, the structure of an insurance company has a huge effect on the premium rates. For instance, your insurer could be working with brokers whom they have to pay a commission resulting in higher premiums.
One ticket automatically results in a higher premium
While you need to avoid any traffic violations and incidents, a single ticket does not imply an increase in your premium amounts. Nevertheless, a higher number of traffic violations could skyrocket your rates.
Do you need to understand more about auto insurance in Newark, NJ? Get in touch with E.S.T.I.R. Inc. for a free estimate on your auto insurance coverage.