8 Car Insurance Myths Debunked

There are many myths surrounding car insurance. Some might have a slither of truth in them, while others are completely fictional. The trouble, however, is that these myths can influence your auto insurance decisions. It’s time to debunk a few myths about car insurance!

Myth 1: Policies for Red Cars Are More Expensive

The year, make, and model of your car will affect your premium. It’s claims history and average repair cost, or how likely it is to be stolen, can also impact your premium. The color of your car, however, doesn’t affect your premium at all.

Myth 2: Thieves Prefer New Cars

Actually, Ford pickup trucks seem to be the top choice for thieves at the moment, according to the IBC. Contrary to popular belief, it doesn’t seem to matter how new or old your car is. The popularity of certain makes and models tend to fluctuate over time. A rare classic car might also stand a higher chance of being stolen than your family van.

Myth 3: Men Pay More Than Women

For drivers under 25, this is generally true. However, after that age, the premiums for men and women tend to be the same.

Myth 4: If a Friend Causes an Accident in Your Car, it Won’t Show up on Your Insurance

Unfortunately, that’s not the case. The insurance covers the car, not the driver. If your buddy causes the accident, the insurance will still cover the costs, but your premium may also increase. If there’s more than one regular driver, you have a few insurance options, depending on your territory.

Myth 5: If You Cause an Accident, You’re Still Covered

The damages might be covered, but only if your policy includes collision coverage. If you’re wholly or partially at-fault for the accident, this will cover you. If the accident isn’t your fault, another component of your policy will likely cover the damages.

Myth 6: Tickets and Accidents Will Permanently Affect My Insurance Rates

While tickets or accidents will affect your premiums in the short term, they don’t have a permanent effect. Tickets only affect your rates for about three years and accidents for six years. If you drive safer, you’ll get lower premiums in the long term.

Myth 7: Theft Is Automatically Covered

Your car is only covered if you have comprehensive coverage, and it’s not included in all insurance policies. Comprehensive cover will also pay for damage from fire, hail, vandalism, etc., state those at BrokerLink. Some insurance brokers will often either include or recommend comprehensive cover.

Myth 8: My Premium Will Increase If I Shop Around

Many drivers believe this myth. However, shopping around for a better rate will not increase your auto insurance premium. And, on that same note, all companies won’t charge you the same price. Premiums can vary by hundreds or even thousands of dollars, so don’t be afraid of shopping around.

The Takeaway

How many times has one of these myths influenced your insurance decisions? Always check your facts and have a frank and open discussion with your insurance broker about what you need.

Now that you have the truth, you can make smart, informed decisions the next time you’re looking for an auto insurance policy.