Auto insurance is an extremely important part of responsible car ownership…providing financial protection and peace of mind in the event of an accident or other unexpected events.
However, there are many myths out there about auto insurance that can lead to confusion and, in some cases, expensive mistakes.
So what’s true and what’s not?
Myth 1:Red Cars Cost More to Insure
Truth – One of the most common auto insurance myths is that red cars are more expensive to insure. In reality, the color of your vehicle has no bearing on your insurance premium whatsoever. Auto insurers base their rates on factors like
your driving history
the make and model of your car
Myth 2: Minimum Coverage is Sufficient
Truth – Many people believe that purchasing only the minimum required auto insurance coverage is enough to protect them adequately.
While minimum coverage may meet legal requirements, it often falls short in providing good comprehensive protection.
In the event of a severe accident, you could be left with significant out-of-pocket expenses.
It’s essential to evaluate your insurance needs and consider options beyond the minimum to ensure you’re adequately insured
Myth 3: Your Credit Score Doesn’t Affect Your Premium
You may need a separate commercial auto insurance policy to protect your business activities adequately.
Failing to do so could result in denied claims and legal complications.
Myth 6: The Insurance of the Car Owner Covers All Drivers
Truth – Another common myth is that the car owner’s insurance will cover any driver of the vehicle. In reality, auto insurance generally follows the vehicle, not the driver.
If someone else is driving your car and gets into an accident, their insurance (if they have it) will be the primary coverage, and your insurance may come into play if their coverage is insufficient.
Myth 7: You’re Automatically Covered When Renting a Car
Truth – Many people believe that rental cars come with automatic insurance coverage, especially when using a credit card for payment.
While some credit cards offer rental car insurance as a perk, it often comes with limitations and may not provide comprehensive coverage. It’s essential to read the terms and conditions of your credit card’s rental car insurance and consider purchasing additional coverage if necessary.
Myth 8: Insurance Premiums Never Change
Truth – It’s a misconception that once you have an insurance policy, your premiums will remain the same indefinitely. In reality, insurance rates can fluctuate for various reasons. Factors like:
moving to a new location
changes in your credit score
rate increases by the insurer can all impact your premiums
Regularly reviewing your policy and talking to your insurance agent about how you can improve your rates can help you save money.
Auto insurance myths can lead to confusion and financial setbacks. If you understand the truth about these myths, you will be able to make better informed decisions when it comes to your auto insurance coverage. Take the time to evaluate your needs, ask questions, and stay informed to ensure you have the right coverage for your specific situation.
At Whitcomb Insurance we love to sit down with our clients, and we would be happy to sit down with you, answer any questions you might have, whether it’s about disability, auto, homeowners, small business or life insurance. You can count on us to be totally honest and upfront with you!
Along with great insurance options, we also offer Financial Services. You can count on us to be totally honest and upfront with you!