10 Common Car Insurance Myths Debunked
Car insurance is necessary for every driver, but it’s also surrounded by misconceptions that can lead to poor decisions and costly mistakes. Let’s clear the air by debunking 10 of the most common car insurance myths.
1. Red Cars Cost More to Insure
One of the most persistent myths is that red cars are more expensive to insure. The truth is that insurance companies don’t factor in color when calculating premiums. They look at the make, model, year, engine size, and safety features—not the paint job.
2. Your Credit Score Doesn’t Affect Your Rate
In many states, your credit score does play a role in determining your premium. Insurers use credit-based insurance scores to assess risk. Drivers with poor credit may pay more, even if they have a clean driving record.
3. The Minimum Coverage Is Enough
While state minimums are legal requirements, they often don’t provide enough protection. If you’re in a serious accident, you could pay out of pocket for damages or medical expenses that exceed your policy limits.
4. Older Drivers Always Pay More
Age can influence premiums, but older drivers don’t always pay more. Drivers in their 50s and 60s often pay less than younger drivers, as they tend to be more experienced and have fewer accidents.
5. Personal Auto Insurance Covers Business Use
Suppose you use your car for business purposes, like deliveries or client visits. Your personal policy likely won’t cover you in an accident, so you’ll need commercial auto insurance to be fully protected.
6. Full Coverage Means Everything Is Covered
“Full coverage” is a misleading term. It typically refers to liability, collision, and comprehensive coverage. However, it doesn’t cover every situation, like mechanical breakdowns or using your car for ride-sharing without proper endorsements.
7. Your Insurance Follows the Driver
In most cases, insurance follows the car, not the driver. If someone else crashes your car, your insurance is usually the primary coverage, and theirs might kick in as secondary.
8. You Only Need to Report Big Accidents
Failing to report minor accidents can backfire. Even if you don’t file a claim, the other party might, or injuries could surface later. Not informing your insurer promptly could lead to denied coverage.
9. Insurance Covers Stolen Personal Items
If your laptop or phone is stolen from your car, auto insurance won’t cover it. These items fall under homeowners’ or renters’ insurance. Your auto policy may only cover damage to the vehicle itself.
10. Your Rate Will Automatically Drop After a Ticket Drops Off
Traffic violations typically impact your rate for three to five years. However, even after they expire, your rate won’t always drop unless you take action, like shopping for new quotes or asking about discounts.
Get A Quote
Understanding the facts about car insurance can save you money and ensure you’re adequately covered. Don’t fall for myths that lead to inadequate protection or inflated costs. Instead, review your policy regularly, ask questions, and shop for the best coverage to suit your needs.
For an affordable car insurance quote, contact us today by calling (541) 318-8835 or click here to connect with us online.
