Auto insurance is a necessary expense for drivers, but unfortunately, there are many myths surrounding this crucial service. These myths lead drivers to make decisions that could ultimately harm them or their wallets. To help clear up the confusion, we’ve compiled a list of common auto insurance myths debunked.
Myth #1: Red cars are more expensive to insure.
False. The color of your car has no impact on your insurance premiums. Instead, insurance companies focus on other factors like the car’s make and model, year, and safety features.
Myth #2: Your insurance will cover everything if you get into an accident.
False. Auto insurance policies have limits, and if the damages or injuries exceed those limits, you would be responsible for paying the difference. Additionally, certain actions like driving under the influence or racing may void your coverage entirely.
Myth #3: You only need the minimum required coverage.
False. While purchasing the minimum required coverage may be cheap, it may not adequately cover damages in the event of an accident. You may be left with expensive repair, medical, and legal bills. It’s important to assess your needs and choose a policy that offers sufficient coverage to protect you financially.
Myth #4: Comprehensive coverage covers everything.
False. Comprehensive coverage is designed to cover damages caused by events like theft, fire, vandalism, and natural disasters. However, it does not cover damages caused by collisions with other vehicles or objects.
Myth #5: Your auto insurance premium won’t increase if you’re not at fault in an accident.
False. Even if you’re not at fault, your insurance premiums may still increase after an accident. Insurance companies view accidents as an increased risk for future claims, regardless of who’s fault it was.
Myth #6: Your insurance follows the car, not the driver.
False. Your auto insurance follows the driver, not the car. This means that if you lend your car to someone and they are at fault in an accident, your insurance rates may go up.
Myth #7: Personal belongings in your car are covered by auto insurance.
False. Auto insurance policies only cover damage to the car and any injuries sustained in an accident. Any personal belongings in the car are not covered and would need to be filed under a homeowner’s or renter’s insurance policy.
By understanding these common auto insurance myths, you can make more informed decisions about your coverage. It’s always a good idea to review your policy with your insurance agent and make changes as needed to ensure you have the right coverage for your unique situation.