With a new school year opening in just a few weeks, auto insurance experts are calling on parents and college freshmen not to forget their coverage. According to many analysts, young motorists would often forego insurance just to save money. Auto insurance for inexperienced and relatively young drivers can reach as much as $2,000 each year or more. The steep premiums often force college freshmen to drive uninsured, placing themselves in more risk.
However, sources from the insurance industry point out that there are a number of widely held beliefs that have no shred of truth in them. If car owners continue to follow and believe in these myths, they may end up getting expensive coverage or worse, not have any insurance at all.
According to experts, most car owners assume that comparison sites charge them for using their services. On the contrary, these sites are free of charge and when used properly, can save policyholders up to 30 percent in insurance costs. Most insurers make use of comparison sites to display their services and products. In return for the marketing exposure, the sites would link their clients to the different products offered by various insurers.
Another common misconception many young car owners have is that they will be compensated for destroyed or damaged personal effects. Most insurance policies do not cover personal items like electronic devices and similar items. In the event of an accident, motorists may have to accept the fact that they can lose their personal effects and not be able to ask for any compensation.
Experts also point out that not all new cars are more expensive to insure. While it may be true that most newly bought cars are more costly to insure because of their value, some new cars are actually cheaper to insure because of other factors. For one thing, specialists argue, vehicles that are considered safer can get lower premiums. Cars with installed anti-theft and security devices are also cheaper to insure because they are less likely to be stolen.
Car owners also have to be aware that cheapest may not always be the best. Because of the ongoing price wars between car insurance providers, competition is at an all-time high. The high demand for auto insurance is actually driving premiums down. However, motorists have to realize that some insurers may actually skimp out on other important aspects like windshield coverage and the like.
