Good information is hard to find. When it comes to insurance, and car insurance in particular, there are a lot of myths and rumors out there. And a lot of them sound completely reasonable when you apply a certain type of logic to them. However, as is the case with much gossip, these myths are not the real truth about auto insurance. We’re going to have some fun debunking twelve car insurance myths.
Myth #1. Red cars cost more to insure than other colors.
Debunked: Perhaps one of the best-known car insurance myths is that red cars cost more to insure than other cars. The reasoning is that the type of person who drives a red car is more likely to speed or be aggressive behind the wheel, leading to more tickets and attention from the police.
However, the insurance company couldn’t care less what color your car is. You could paint it polka-dotted. It wouldn’t affect your rates because the insurance company is more concerned with the type of vehicle it is, meaning the make, model, and year.
So, don’t worry about getting that fire-engine red car. If you like red, buy a red car without fear for your insurance rates.
Myth #2. Your car insurance will cover damage to your car if you’re in an accident, or if a tree falls on it.
Debunked: This is one of the more dangerous myths out there. The truth is that damage to your car will only be covered if you purchase collision coverage and comprehensive coverage with your policy. Collision covers damage to your car if you’re in an accident or collide with something and comprehensive covers theft, vandalism, fire, and falling objects – think trees.
Myth #3. My belongings will be covered by auto insurance if they’re stolen from the car.
Debunked: Actually, your home insurance might help you out here.
Myth #4. Comprehensive coverage will take care of mechanical trouble with my vehicle.
Debunked: False. Comprehensive coverage will only cover things like vandalism, fire, theft, and damage from objects that spontaneously fall from the sky. Brakes that just won’t stop squeaking? Not so much.
Myth #5. Newer cars are going to cost more to insure.
Debunked: It really depends on the year, make, and model of the vehicle you’re insuring.
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Myth #6. It’s cheaper and better to buy insurance online.
Debunked: Sometimes it’s better to deal with a real person. A trustworthy insurance agent from a brick-and-mortar agency can help you make sure that your car is fully protected and not underinsured, and that means that if you ever have a claim, less money will come out of your pocket. If you get insurance online but don’t have enough coverage or the type of coverage you need, that online insurance could be more costly in the long run because you’re on the hook for the expenses of a loss. A real agent can also give you advice on your unique situation and help you find discounts, which can help you save money on your car insurance.
Myth #7. Insurance will pay off the rest of my loan if my car is totaled.
Debunked: Well, not exactly. The insurance company will pay you the actual cash value of the car at the time it was totaled (minus your deductible.) But the ACV of your car might not be enough to cover what’s left on your loan, and if that’s the case you’d have to pay the difference on your own. The only way to avoid that scenario is to buy gap coverage.
Myth #8. Smaller cars cost less to insure.
Debunked: The type of coverage you have on your small car will impact the price. Collision and comprehensive coverage can be pricier for smaller cars because they may have more damage following an accident than a larger vehicle.
Myth #9. My car is totaled if I can’t drive it away from an accident scene.
Debunked: Insurance companies determine if the car is a total loss by looking at the cost of repairs compared to the value of the car. If the cost of repairs is above a certain percentage of the value of the vehicle, it could be declared totaled.
Myth #10. If I get an out-of-state driving ticket, it won’t “follow” me back home.
Debunked: Ah, yes it very well could. Just because you were speeding in Florida, doesn’t mean the ticket goes away when you get back to Georgia.
Myth #11. The insurance company only cares about my driving history (tickets and accidents.)
Debunked: It’s a bit more complicated than that. The insurance company will also look at your age, the type of car you drive, how you’re using your car, how much you drive, how likely the vehicle is to be stolen, and your credit score. To name a few things.
Myth #12. I don’t have to worry about my older car getting stolen. Who would want to steal a car that’s not new?
Debunked: Actually, older cars are bigger targets for theft than newer cars. Believe it or not, thieves can get more money for older-model car parts. Older cars are usually easier to steal, too, so just because your car is getting up there in years doesn’t mean you don’t have to be careful.
And perhaps the most dangerous – Myth #13. The state minimum levels of insurance are enough coverage.
Debunked: This is not necessarily true. The minimum level of insurance for your state will most likely not be enough to cover the costs of a serious accident, so you would be on the hook for covering the rest of the expenses you’re legally obligated to pay to the injured party. Besides, the minimum probably doesn’t include collision or comprehensive coverage, which means that your own vehicle will not be covered for repairs or replacement following an accident or another mishap. The truth is that you probably want to get higher levels of coverage than the state minimum and to add physical damage coverage.
So, as you can see, certain car insurance “truths” may not actually be so true. Don’t believe everything you hear. It’s important to get insurance advice from a trusted insurance advisor so that you can be sure that you’re getting good intel. InsuranceHub would be happy to become that advisor to you. We can help you shop for your auto insurance so that you know you’re getting the coverage you need at the best possible rate. We strive to be an insurance partner to every one of our clients, so you can trust that we’ve got your back when it comes to your car insurance. To get car insurance quotes, you can fill out our online form or give us a call today.