Continuing on from our last article, here are 3 more things people typically believe about auto insurance because someone who doesn’t know anything about insurance just made it up.
1) New Drivers Pay Higher Rates
To be fair, it is true that brand spanking new drivers will have to absorb higher rates because of their status (new and inexperienced), there are a couple ways that new drivers can help lower their premiums. For instance, there may be some discounts available such as good student discount, and this will depend on how good your grades are. As you might have guessed, this is because students with good grades are less likely to be reckless drivers.
Further, you might be able to get discounts for taking driver education courses.
2) If the Police Say You’re Not at Fault, the Insurance Company Will Agree.
Just because the police decide whose fault the accidents, doesn’t mean the insurance company is legally obligated to agree. After all, the insurance company is the one who will be dishing out the funds, so it’s ultimately up to them.
Insurance companies will use police reports in their determination, but the final decision is up to them.
3) Your Insurance Covers You Everywhere
Don’t be alarmed, Canadian Insurance Policies will cover you everywhere in Canada and the United States, but if you happen to drive into Mexico, you will need to purchase separate insurance to cover you.