10 Auto Insurance Myths You Should Stop Believing
When it comes to car insurance, there’s no shortage of myths floating around—many of them misleading. From the color of your car supposedly affecting your rates to the belief that a single ticket will skyrocket your premiums, it’s time to set the record straight.
Here are 10 common auto insurance myths debunked:
Myth 1: Your Credit Doesn’t Affect Your Insurance Rate
Truth: Your credit history can actually impact your car insurance premiums. Insurers often use a credit-based insurance score to gauge financial responsibility, which can predict your likelihood of filing a claim. A higher credit score generally leads to lower rates, while lower scores may increase your premiums.
Myth 2: Basic Insurance Covers Trees, Weather, Vandalism, and Theft
Truth: Standard auto insurance policies usually don’t cover damages from falling trees, storms, fire, vandalism, or theft. To protect against these risks, you’ll need a comprehensive policy that covers more than just collisions.
Myth 3: A Ticket Will Always Raise Your Rates
Truth: Not necessarily. A single speeding ticket may not affect your premiums, especially if your driving record is otherwise clean. In some states, completing a safe driving course can even help lower your rates.
Myth 4: Minimum Coverage Is Enough
Truth: Most states only require basic coverage, which often isn’t enough to fully protect you in an accident. Experts recommend carrying at least $100,000 of bodily injury protection per person to avoid hefty out-of-pocket costs.
Myth 5: Personal Insurance Covers Business Use
Truth: Using your personal vehicle for work doesn’t automatically extend coverage. If you drive for business purposes, you may need commercial auto insurance to ensure you’re protected.
Myth 6: Car Color Affects Insurance Rates
Truth: The color of your car does not impact your premiums. Insurers focus on factors like make, model, age, repair costs, and driving history, not whether your car is red, blue, or black.
Myth 7: Expensive Cars Always Cost More to Insure
Truth: While the purchase price might seem important, insurers often consider repair costs and safety features over the car’s value. Some mid-priced cars can cost more to insure than luxury models because repairs are more expensive.
Myth 8: Insurance Rates Go Up as You Age
Truth: Older drivers often enjoy lower premiums. Many insurers offer discounts to drivers over 55, especially those who take accident prevention courses or drive less frequently.
Myth 9: If Someone Else Crashes Your Car, Their Insurance Pays
Truth: Typically, your auto insurance covers damage to your vehicle regardless of who is driving. Always check your policy details and state laws to understand how coverage works.
Myth 10: Military Members Pay More for Insurance
Truth: Service members and veterans often qualify for special discounts. Providing proper documentation can help ensure you’re not overpaying. Many insurers also offer perks for military families.
Bottom Line
Auto insurance can be confusing, but don’t let myths guide your decisions. Understanding the facts can save you money, prevent coverage gaps, and ensure you’re fully protected on the road. Always check your policy details and speak with your insurance agent to get accurate, personalized guidance.