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Whether you have had insurance for years or getting insurance for the first time, millions of questions can be asked about your auto insurance. There are gratuitous amounts of information you can learn, and over time this information can become misinterpreted. So how can you tell the difference between fact and fiction? Other than talking with an agent, there isn’t a for sure way to get a correct answer. We are going to go over some facts and myths about auto insurance, that way you will have a better understanding of what you should expect when looking for coverage.
Myth: If you have a red car, your insurance cost will be higher.
Truth: There are several factors that determine your auto insurance. These factors range from your driving record to the drivers age. Another major factor is the car that is being insured. Your cars make, model, engine size, body type, and age will affect the cost you will pay. However, the color of your car does not affect how much your insurance will be.
Myth: As you age your premiums rise.
Truth: Many insurance companies offer a discount on auto insurance for drivers over 55, as long as they can complete a safe driving course.
Myth: Having the minimum amount of auto liability insurance required by law is ok.
Truth: Most states require a minimum amount of auto liability coverage. However, insurance is not a necessity that you should be skimpy on. You’ll find that having more coverage than the minimum requirement is needed for most of today’s accidents. If the minimum does not pay for all of the accident, then you will have to pay the rest out of pocket.
Myth: Your credit score is not used to determine your premiums.
Truth: In most states, insurance companies use your credit history to determine and set your rates.
Myth: If other people drive your car and get in an accident, their insurance will cover it.
Truth: Even though you were not driving at the time of the accident, the car insurance policy covering the vehicle is usually responsible for the damages. So make sure that if you let someone borrow your vehicle, they are someone you know will drive responsibly.