Auto insurance is a necessary purchase for all drivers, but it can be confusing and expensive. There are many common myths about auto insurance that can lead to misunderstanding the coverage and ultimately paying too much for it.
In this article, we will debunk five of the most common myths about auto insurance.
Myth 1: Red cars cost more to insure
Many people believe that red cars cost more to insure because they are more likely to get pulled over by police. However, insurance companies do not consider the color of your car when determining your premium. The make and model of your car, as well as its safety features, are what affect your rate.
Myth 2: Your credit score does not affect your premium
Insurance companies will often use your credit score to determine your premium. A bad credit score may mean that you are more likely to file a claim, so you will be seen as a higher risk and charged a higher rate.
Myth 3: All insurance companies offer the same rates
Insurance companies use different formula to determine premiums, so it’s important to shop around for the best rate. One company may charge a higher rate for the same coverage than another company.
Myth 4: Your personal belongings are not covered in your car
Your personal belongings are not automatically covered in your car insurance policy. You would need to purchase additional coverage, such as comprehensive or collision, to insure your belongings.
Myth 5: Your car insurance expires when you move
If you move to a new state, your car insurance will not automatically expire. However, you will need to notify your insurance company of your new address and they may need to adjust your coverage and rates.
Myth 6: Your car insurance covers you anywhere in the world
Your car insurance policy will only cover you in the countries that are listed on your policy. If you plan to travel outside of the country, you will need to purchase additional coverage.
Myth 7: You don’t need insurance if you don’t own a car
If you don’t own a car but still drive, you will need to purchase an non-owner’s car insurance policy. This type of policy will provide liability coverage if you cause an accident.
Myth 8: Your car insurance covers any driver
Your car insurance policy will only cover drivers who are listed on your policy. If someone else drives your car and they are not listed on your policy, they will not be covered.
Myth 9: You don’t need car insurance if you only drive occasionally
If you only drive occasionally, you will still need to purchase a car insurance policy. Your insurance company will consider how often you drive when determining your premium.
Myth 10: Your car insurance covers rental cars
Your car insurance policy will not cover rental cars. You will need to purchase separate rental car insurance or use the coverage provided by the rental car company.
Myth 11: You don’t need car insurance if you have a good driving record
Everyone is required to have car insurance, even if you have a perfect driving record. Car insurance is designed to protect you financially in the event of an accident.
Myth 12: Your car insurance covers you for any damage to your car
Your car insurance policy will only cover certain types of damage to your car. If you want comprehensive coverage, you will need to purchase additional coverage.
Myth 13: You don’t need uninsured motorist coverage if you have car insurance
Uninsured motorist coverage is important even if you have car insurance. This type of coverage will protect you financially if you are in an accident with a driver who does not have insurance.
Myth 14: Your car insurance covers medical expenses
Medical expenses are not typically covered by car insurance policies. You would need to purchase separate health insurance or med pay coverage to have this type of protection.
Myth 15: Your car insurance covers you in any situation
There are some situations where your car insurance will not cover you. For example, if you drive while under the influence of drugs or alcohol, your insurance company may not cover any damages that occur.
There are a lot of myths about car insurance. It’s important to be aware of these myths so that you can make sure you have the coverage you need. If you have any questions about your car insurance, be sure to ask your agent or company for clarification.