5 Misconceptions About Auto Insurance People Believe
Posted on: 28 July 2021
Most states in the U.S. have required drivers to carry auto insurance for many years. Despite that, there are still so many myths about auto insurance floating around. Believing these myths can cost you, so it is important to separate fact from fiction.
Here are some common misconceptions about auto insurance you shouldn't believe.
It’s Fine to Just Get the Minimum Auto Insurance Required by Law
Most states only require you to purchase a certain amount of auto liability coverage. However, if you only have liability coverage and get into an accident, you will have to pay for the damage to the vehicle yourself. If you have a newer vehicle, it is worth it to invest in full-overage insurance.
Auto Insurance Companies Will Charge More to Cover Vehicles of Certain Colors
You've likely heard that insurance companies charge higher premiums for red cars. This is not true. Insurance companies do not consider the color of a vehicle when deciding how much to charge for premiums. They will, however, look at other factors, like the make and model of a vehicle.
If Someone Borrows Your Car and Gets Into an Accident, You Won't Be Responsible
Before you allow a friend or family member to borrow your vehicle, understand that you will actually be responsible for any accidents they get into. You will be on the hook for the deductible on the claim you file.
Bigger Vehicles Are Always More Expensive to Insure Than Smaller Ones
This is one of the most common myths about auto insurance. The truth is that insurance companies do not care too much about the size of a vehicle. They do, however, consider the engine size. A small sports car that has a big engine, for example, would likely be expensive to insure.
Auto Insurance Companies Can Cancel Your Insurance At Any Time
Many people fear that their auto insurance company will drop them immediately if they get into an accident or receive a speeding ticket. Fortunately, this is not true. Auto insurance companies are actually only allowed to cancel coverage if you have not paid your premiums or committed fraud. However, your auto insurance could decide not to renew your policy when it ends.
As you can see, there are a lot of myths about auto insurance. If you have additional questions about your auto insurance, you should get in touch with your insurance agent promptly.
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