There is much misinformation about the insurance industry in general and auto insurance in particular. For example, you will hear some say a red car is more expensive to insure than a blue car, or getting a traffic ticket will increase your premiums. However, there is also a lot of good information you can get free regarding any insurance matter from your insurance agent or broker. Your auto insurance broker is legally required to disclose full information to enable you to make an informed choice. However, you will still hear many myths floating around. Here are several myths you shouldn't believe about auto insurance:
Myth 1: Certain colors are more expensive to insure
It is a common belief that red colors are more expensive to insure. This myth may have originated from fast sports cars popularly colored in red. Such cars were more expensive to insure. But stock color does not play any part in your premium auto insurance. It would only be a factor if your car has a custom color that is difficult to get.
Myth 2: Traffic tickets raise insurance premiums
Getting a traffic ticket doesn't automatically reflect badly on your risk profile for auto insurance. Many reasons could get you a traffic ticket, and many of them are minor. Traffic violations are not equal and can't reflect equally on your risk profile.
Serious violations like driving under the influence or speeding dangerously will mark you as a risky driver. If you get many such violations, you will see your premiums go up.
Myth 3: A friend's insurance can cover your car
If a person borrows your car and gets into an accident, it depends on whether the borrower is at fault. If your borrower is at fault, your auto insurance will primarily compensate the other party. If the insurance declines to pay, the burden falls on you. It means you should be very careful of who you let drive your car.
Myth 4: Older people pay more for auto insurance
The opposite is true. Seniors qualify for special discounts, especially when they complete an accident prevention course. Retired seniors generally drive less than active younger people, which makes them less risky in the eyes of auto insurance actuaries. As a result, they pay the same, if not less, than younger drivers.
Myth 5: Personal insurance pays for business damage
If you are a small business owner, you likely use your personal car for business. However, your personal auto insurance is highly likely to decline compensation if your car gets into an accident while on business activities. Therefore, you need business auto insurance for that specific vehicle.
Do you have any questions regarding auto insurance matters? Talk to your auto insurance agent about suitable insurance coverage.
Share3 December 2021
I have always been someone who loves to work hard for what they have, which is why I started paying attention to how I was protecting my investments. I realized that although I had great medical and dental insurance, my car needed a little extra protection. I started working hard to find an insurance policy that would work well for my needs, and before I knew it, I was able to sign up for a new policy. This blog is all about choosing a car insurance policy that works well for you and your family, so that you don't have to worry about falling short.