Have You Fallen Victim to These 5 Car Insurance Myths?

Every state requires you to have car insurance to register your vehicle. But how do you know what coverage you need and what coverage is optional? How do you know whether you are paying the right premium? There are myths out there about car insurance. If you fail to investigate them, you could wind up paying too much. Conversely, you could have an accident and find you do not have enough coverage.

Top 5 Car Insurance Myths

To help you avoid overpayment or underinsurance scenarios, let’s explore the top five myths about car insurance.

Myth #1: Car color matters.

Some people believe that red cars demand a higher insurance premium. No study shows that red cars are more likely to be in accidents or be stolen, however. On the contrary, one particular study showed that low visibility cars such as black and gray vehicles were more likely to be involved in crashes. But, because such evidence is not overwhelming, insurance companies have not established premiums based on color.

Myth #2: Age affects premiums.

If you think that your car insurance premiums will increase as you age, you are probably worrying needlessly. In fact, older drivers (over age 55) are often eligible for discounts on their car insurance premiums under certain circumstances. The situation may change, though, as the baby boom generation continues to age and drive. This is due to the fact that drivers aged 85 and older appear to be at greatest risk of suffering injuries in a crash.

Myth #3: Car insurance covers you under all situations.

People often find out after an event that their insurance would not pay for the cost of damage caused by theft, vandalism, storms, falling trees and other situations. Whether your policy covers you in these situations depends on the coverage you purchase. To protect your vehicle from everything, you need both comprehensive and collision coverage.

Myth #4: You only need the minimum amount of liability insurance.

Accidents often cost more than the minimum amount required by the state. If you do not have enough coverage, you could pay significant out-of-pocket costs for expenses that exceed your limits. These payments often exceed the costs of the additional premium, making it prudent to have more than the bare minimum amount of coverage. Your takeaway: just because the state only requires a certain amount of coverage does not mean that amount is adequate in your situation.

Myth #5: Your insurance covers anyone who drives your car.

This is not always true. Each state governs this differently, so it is important not only to know what is covered in your home state, but also when traveling across state borders. Get the facts before you decide to lend your car to anyone.

Get the Truth About Car Insurance

These and other myths about insurance make it important to be informed. Otherwise, you could pay too much for car insurance or find that you do not have adequate coverage after it’s too late.

Get the truth about car insurance by speaking with a knowledge insurance agent, contact us.

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