There is a saying that what you don't know won’t hurt you. However, when it comes to auto insurance, not knowing what your policy covers could leave you financially exposed in the aftermath of an accident. When it comes to consumerism, Millennials are an ideal market, but for selling them things they actually need, marketing couldn't be harder. While young people know more than we might give them credit for, when it comes to auto insurance, there are some aspects of car insurance that they are still greatly naïve about.
The Color of Your Car Means Nothing When Pricing an Auto Policy
Many Millennials believe that the color of their car determines how much they
will pay for auto insurance. Specifically, they believe the myth that red cars
get pulled over more often than other cars, which may cause their insurance
rates to go up. Fortunately, this fact is not true, and most experts believe
that it was made up by parents who wanted their children to drive slower and
more practical vehicles.
Your Policy May Not Cover Everything
Millennials somewhat understand what their policy covers and does not cover.
For instance, 68% of drivers in this age group correctly said that their
auto insurance policy does not cover items stolen from a vehicle. Only 38% of drivers over the age of 65 who were asked this question answered it
correctly.
However, many Millennials believed that their insurance policy would cover them
entirely if they got into an accident that was their fault. While an insurance
policy can provide coverage, the extent of the protection that a policy offers
depends on the terms of that policy.
While states may set their own collision and liability insurance minimums,
drivers should have more than that to adequately protect them if they are in an
accident. If you are hurt in an accident, it may be a good idea to talk to a personal injury lawyer. An attorney may be able to help you
settle your case in a favorable manner.
Location Has an Impact on Your Insurance Rates
While this may seem like a big deal at first, where a driver is located can
have an impact on his or her insurance rates. Drivers in rural areas generally
pay less for their policies because there are fewer cars on the roads that they
drive on. As fewer cars equals fewer accidents, drivers on country roads pose
less of a risk to insurance companies. Drivers who spend most of their time in
cities or on highways will pay higher rates as there are more cars on those
roads and the risk of an accident is higher.
The Best Time to Review a Policy Is Before an Accident
Drivers under the age of 25 will pay $6,100 on average for car insurance.
Therefore, it is a good idea to know how much protection a driver is getting
for his or her money. If a driver is not satisfied with his or her auto
insurance rates, it may be possible to find a cheaper policy by visiting an auto insurance quotes comparison website.
Because of these and other myths that Millennials believe about auto insurance, helping them find the right deal or even the best coverage can be a challenge. It’s even harder when an adult who may not know what 'on fleek' means is trying to sell them something. This can pose a big problem for insurance agencies who are seeking to not only keep their clients safe but other drivers too. Helping debunk and straighten out these myths and other beliefs that are incorrect can help Millennials gain trust in agents and get them covered in the best of ways.
