Auto Insurance Myths: What Not to Believe
Before purchasing auto insurance, it’s important to understand the factors that affect your policy premium and coverage. However, when there’s a lot of misinformation, the process can become quite confusing.
Here are some auto insurance myths you should not believe:
Red Cars Cost More to Insure
While some red cars might cost more to insure, color is not one of the determinants of your rate of insurance. The primary factors that affect your premium are your driving record, engine, body type, and the make and model of your car.
The Minimum State Requirement Is Good Enough
Although most states require car owners to carry a certain amount of liability insurance, the minimum coverage may not cover all the expenses in case of an accident. You might want to opt for collision and comprehensive insurance policy to fully protect your vehicle from all types of damage.
If Someone Else Wrecks Your Car, His or Her Auto Insurance Will Cover the Damage
A popular myth about auto insurance is that you’re off the hook for any third-party damage to your vehicle. However, for a personal auto policy, the insurance generally follows the car, not the driver. Irrespective of the driver, it’s typically your insurance coverage that would be used to cover any claims.
High Tech Safety Features Lower Your Insurance Cost
Not all safety features lower your insurance cost. They might keep your car safer, but, on the other side, these sophisticated add-ons are more expensive to repair. For this reason, safety features such as advanced driver assistant systems (ADAS) may raise premiums rather than lower them. However, there is not enough verified data to determine if these features truly reduce the risk of accidents.
Personal Auto Insurance Covers Business Use
As per the Insurance Information Institute, personal auto insurance might not protect you if you’re self-employed and use your car for business reasons. In that case, you might need a commercial auto insurance policy as well.
These are some auto insurance myths to watch out for when choosing a policy for your car. For assistance with all your car insurance-related needs, contact the experts at Club Agency Insurance Brokerage in Garden City, New York.