There are sensible ways to lower the cost of your car insurance Santa Monica! There are ways that work really well and there are ways which won’t work at all. Here are some myths about auto insurance to help you separate fact from fiction.
Myth: Your premium cannot be increased if you have a no claims discount
A no claims discount is a discount you receive for having no claims against your insurance policy for an extended period of time. If you reach the maximum no claim discount level you may enjoy some protection even if you do have an at-fault accident. But that does not mean your premium will never go up – costs rise and so do insurance premiums.
Myth: Auto insurance companies can charge what they like
This is untrue. Every auto insurance company in California is required by law to disclose how they determine their rates, and they cannot stray from this.
Myth: insurance on a new car depends on the cost of the car
It’s not only the value of the car that determines how expensive it is to insure. Other factors come into play, such as how expensive it would be to repair, how likely it is to be in an accident (according to statistics), and its popularity among thieves. The safety features of your car also play a role in determining how much a particular make or model costs to insure.- the safer the vehicle occupants are in the event of an accident, the less injury related expenses an insurer may have to pay out.
Are you confused about any aspect of auto insurance? Ask us, and we’ll try to clarify it for you.
Myth: Your premium cannot be increased if you have a no claims discount
A no claims discount is a discount you receive for having no claims against your insurance policy for an extended period of time. If you reach the maximum no claim discount level you may enjoy some protection even if you do have an at-fault accident. But that does not mean your premium will never go up – costs rise and so do insurance premiums.
Myth: Auto insurance companies can charge what they like
This is untrue. Every auto insurance company in California is required by law to disclose how they determine their rates, and they cannot stray from this.
Myth: insurance on a new car depends on the cost of the car
It’s not only the value of the car that determines how expensive it is to insure. Other factors come into play, such as how expensive it would be to repair, how likely it is to be in an accident (according to statistics), and its popularity among thieves. The safety features of your car also play a role in determining how much a particular make or model costs to insure.- the safer the vehicle occupants are in the event of an accident, the less injury related expenses an insurer may have to pay out.
Are you confused about any aspect of auto insurance? Ask us, and we’ll try to clarify it for you.