Truths and Myths About Car Insurance

Category: Blog

Whether you are shopping for a new vehicle or just shopping around for an auto insurance policy that better fits your needs, you may come across some interesting information regarding auto insurance.  Some of the information may be true, but a lot of it could just be myths people spread over the years.  To clear up some of those rumors, here is a true and false list of some of the more popular things we have heard:shot  of a  red sports tuning car

  • Red sports cars will cost you more in car insurance premium.
    • FALSE.  Your auto premium is not at all affected by the color of your vehicle.  You can have a vehicle that is purple with gold pin striping and zebra print bumpers, and it would not matter in the least.
  • Your credit affects your auto insurance premium.
    • TRUE.  You are given a credit-based insurance score that can be used to determine your insurance rates.  However, most people do have good credit so plugging in the insurance score may result in a lower premium.
  • Every policy covers damage to your vehicle.
    • FALSE.  You can purchase additional collision and comprehensive coverage of your vehicle, but insurers don’t always cover it in a standard policy.  When you have an auto loan outstanding, your lender may require you to have collision and comprehensive coverage until your loan is paid off.
  • You only need the minimal required auto insurance to cover you in the event of a claim.
    • DEPENDS.  In most cases, you will probably need more than just the state required minimum to cover fully claims.  Without it, you could be paying out of pocket once the expenses meet the limit on your policy.

Talk with one of our insurance agents to determine how much insurance you would need in the event of an auto accident.

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