The Top 5 Auto Insurance Myths vs The Truth
Car insurance is required, right? We all want to lower our premiums. Some of us investigate vehicle insurance quotes, discounts, and lower rates online.
In our study, we occasionally encounter misconceptions and base our policy on them. We may believe certain tales that friends or relatives have told us. These vehicle insurance myths might lead you to purchase incorrect or excessively expensive coverage.
We’ve compiled a list of the most common auto insurance myths and the truth behind them.
1. Auto Insurance Costs Go Up With Age
Car insurance rates actually become more affordable until age 65. Most auto insurers say 17-year-old drivers are less safe and more accident-prone, so they make more claims. Young drivers are more reckless than those over 25. Accident risks decrease with time, resulting in fewer claims. After 65, your insurance costs may rise, but senior driver discounts could offset that.
2. State Minimums are Enough
The state’s required minimum coverage for auto insurance is adequate. The truth? In an accident, it’s not enough. If you’re in an accident or your car is destroyed by a natural or man-made catastrophe, you’ll have to pay for repairs and medical expenses. We can’t depend on the state minimum to cover this in full. This is a huge myth.
3. Credit Score Doesn’t Affect Auto Insurance
Your credit score affects your vehicle insurance premium. The driver’s credit score shows how reliable they are and how likely they are to pay their premium on time.
Most individual states have barred insurance firms from utilizing credit scores. Indirectly, corporations utilize this data. By making payments on time, drivers can improve their credit score.
4. Personal Auto Insurance Covers Business Use
Business owners may find themselves using their personal vehicles for work errands. No big deal, right? Wrong. Using your own car for work purposes is not covered by most insurers. This means you won’t be able to make a claim if anything happens to your car while using it for work errands or travel. Commercial car insurance is needed. Even meeting a customer for coffee requires a business car.
5. Red Cars Cost More to Insure
Car color has no effect on insurance rates. This is one of the biggest insurance myths about cars. Red vehicles are deemed more accident-prone hence, people think insurance premiums will be more expensive. In fact, insurers don’t consider automobile color when calculating premiums. Your insurance won’t go up if you purchase a red car compared to a neutrally colored car.
