Is Car Insurance Expensive? See myths and truths
When we think about taking out car insurance, some doubts may arise in those who do not have so much knowledge about the product and it is possible to get confused in the face of unsupported opinions. This is where some myths arise on this subject.
Because of this, we prepared this text to talk about some myths and truths about car insurance. It is important to note that each insurer has its way of working and there may be some differences in certain services offered. But in general, the rules remain.
Table of Contents
Importance of car insurance
Before proceeding with this important matter, know that at Minuto Seguros we have the best car insurance companies on the market. And if you have any questions while hiring, you can count on our team to clarify everything.
The importance of auto insurance is very great because that way you don’t drive unprotected and also offer that security to your family and even third parties.
Still without insurance for your car?
Is Car Insurance Expensive?
This is a great myth that surrounds the issue of insurance, but it is not the only one. First of all, it is worth clarifying that it is not expensive, given the benefit it brings.
But we will explain this a little better below and also other questions.
Know now some myths and truths about auto insurance!
Is it possible to save on auto insurance?
If you’ve ever wondered if car insurance is expensive, you’ve probably thought about whether or not it’s possible to save on it.
The answer is yes, as long as you are aware of the choices you intend to make and what the implications are. In summary, in addition to basic assistance, it is possible to add coverage to the insurance according to the need or preferences of each client.
By opting for more coverage that is not mandatory in your policy, naturally, your payable amount will increase, but it is always important to understand that this is something flexible, which you can adjust according to your priorities and conditions.
The main thing is that you avoid canceling your insurance as much as possible. Therefore, if at any time you have difficulty paying this payment, always negotiate with your broker to understand how pricing is done and what can be adapted. There are two ways you can save money:
Adjust coverages
Ever wondered what auto insurance covers and what it doesn’t? In parts, this answer has a point in common with all cases, which is what it refers to basic coverage, such as theft, fire, and explosion.
But others, such as broken glass, broken accessories, or a spare car, for example, are additional. Putting them in the policy will increase the premium value (ie what you pay in total) but on the other hand, they are peace of mind in the case of claims in these areas.
So, evaluate your timing. If you’re on a tighter budget, adjust your coverage to what you can afford.
Make the franchise more flexible
Another possibility is to reduce the premium by increasing the deductible. In general, the insurance reimburses up to a limit, provided for in the policy, in the event of partial losses, to cite the hypothesis, and the insured pays another part (as in the case of a repair).
If you opt for a higher deductible, you can pay less for insurance. But on the other hand, it will be wise to have a reserve in case there is any such situation.
It should be noted that in case of total loss there is no need to pay the deductible.
Myths and truths about car insurance
All about the myths and truths about car insurance.
If you don’t pay your car insurance, it’s canceled
Truth. Like any other product, if there is no payment for the insurance, it can be canceled. Of course, there are some possibilities, for example: if it is made with four installments, three have been paid and the last one has not, it remains in force for a certain number of days so that the regularization can be made. We explain more about this subject in this text that answers how long the policy is canceled due to non-payment.
Car insurance that stays in the garage is cheaper
Truth. This is one of the great truths when we talk about car insurance. This happens because a car that is left in the garage is less exposed to risks than vehicles that are parked on the streets, increasing the probability of an accident occurring.
Women generally pay less for car insurance
Truth. Women tend to pay less for insurance, but this will depend on the profile compared between women and men. If the profiles are identical and the only difference is sex, the probability of a woman paying less is high.
According to data from insurers, most claims, especially those referring to total loss, occur in the hands of men and not women. So, considering that women are a lower risk group compared to men, they pay less than men, generally. Therefore, it is possible to say that, in general, insurance for women is cheaper.
Older cars have more expensive insurance
Truth. Old cars, generally more than 10 or 15 years old, are very difficult to maintain and find parts. Sometimes they don’t even exist anymore or they are very expensive. In general, it is common for insurance for new or used cars with up to five years of use to have the cheapest final value. That’s considering coverage for crashes, robbery and theft, and basic assistance.
Installing blockers and trackers makes car insurance cheaper
Truth. The amount charged by the insurance company will be lower because the chances of the car being found in case of theft or theft increase with blockers and trackers installed.
More expensive insurance for newer cars
Myth. The first information to be understood by people who are taking out insurance for the first time is that there is no fixed table of car insurance. The price of car insurance is calculated based on several variables, according to the driver’s profile, vehicle model, and where he spends the night parked, among other factors.
Natural disasters are not covered
Myth. Many people believe that auto insurance can’t really cover natural disasters, but additional coverage for damage caused by nature plays a role. With this protection contracted, accidents caused by this type of event are covered. Among the claims that fall into this category are problems caused by storms, wind, earthquakes, floods, falling trees, and others.
Car insurance benefits
Going without auto insurance is very risky, as we never know when an unforeseen accident may happen. Not even for the day-to-day rush, we can neglect to renew and keep it up to date.
Therefore, it is very important to quote with a broker that allows you to evaluate the proposal of several solid insurance companies in the market with practicality.
Below, we explain the biggest benefits of having this protection:
Prevention savings
Ever heard that “prevention is better than cure”? With insurance, the prevention economy works just as well. By disbursing an amount with the insurance, either in cash or in installments, you save much more than if you have to bear the losses of a situation, such as a repair in the workshop, entirely on your own.
Cheapest repairs
So, with insurance, repairs can be cheaper, even paying the deductible. Not to mention that some insurers may allow discounted repairs on small repairs, depending on the plan and company chosen.
24-hour assistance offering greater peace of mind
Last but not least, having insurance means having 24-hour assistance. This brings greater peace of mind for you and your family.
Thus, the idea that car insurance is expensive is not supported by the enormous benefit it can bring, preventing greater damage from being irreparable in many cases.
Was it possible to understand the main myths that surround the idea that Geico car insurance is expensive and clarify your doubts? Need to get a quote for yours? Start now!
May 31, 2022