Auto insurance is something every driver needs. It helps protect you financially and gives you peace of mind whenever you’re on the road. Unfortunately, many drivers still believe outdated or incorrect information about how car insurance works.
Believing these myths can lead to confusion or even costly decisions when choosing coverage. Let’s take a closer look at some of the most common auto insurance myths and the facts that prove them wrong.
Myth #1: Red Cars Cost More to Insure
You may have heard that red vehicles come with higher insurance premiums. In reality, the color of your car has nothing to do with the cost of your insurance. Car insurance companies typically calculate premiums based on factors such as the vehicle’s make and model, your driving history, your age, and where the car is located. The color of the vehicle isn’t considered when determining insurance rates.
Myth #2: The Cheapest Policy Is Always the Best Choice
It’s tempting to choose the lowest-priced policy available, but the cheapest option isn’t always the smartest one. Low-cost policies may offer minimal coverage, which could leave you exposed if you’re involved in an accident. Instead of focusing only on price, it’s important to compare policies carefully and choose coverage that adequately protects you and your vehicle.
Myth #3: Insurance Gets More Expensive as You Age
Many people assume their insurance premiums automatically increase as they get older. While age can be one factor insurers review, it doesn’t necessarily mean higher costs. In fact, experienced drivers with a strong driving history are often viewed as lower risk. Some insurance companies even offer discounts to older drivers who maintain clean driving records.
Myth #4: Personal Auto Insurance Covers Business Use
Many drivers assume their personal auto insurance policy will cover them if they use their car for business-related tasks. In many cases, this isn’t true. If your vehicle is used regularly for work purposes, you may need a separate business auto policy to ensure you’re properly protected while driving for business activities.
Myth #5: If Someone Drives Your, Their Coverage is Primary
The idea that auto insurance covers the person and their actions, not the vehicle, is a common myth. This does vary somewhat state by state, but in Texas, the auto insurance policy covers the vehicle itself. If you allow someone to drive your car and they have an accident, your insurance policy will be considered primary, and you are open to liability in that collision.
Myth #6: The Minimum Required Coverage Is Enough
Most states require drivers to carry at least a minimum level of liability insurance. However, that minimum coverage may not provide sufficient protection in a serious accident. Additional coverage options such as collision or comprehensive insurance can help cover damage to your vehicle, theft, or other unexpected events. Expanding your policy can provide greater financial protection.
Myth #7: Your Rates Always Increase After an Accident
While insurance premiums can increase after an accident, it doesn’t happen in every situation. If you have a strong driving record and no previous incidents, your insurer may not raise your rates significantly, or at all. However, multiple accidents or traffic violations could increase the likelihood of higher premiums.
Myth #8: Credit Scores Don’t Impact Insurance Rates
Some drivers believe their credit score has no connection to their auto insurance costs. In reality, many insurers review credit information when determining premiums. Drivers with stronger credit profiles may receive lower rates, while those with lower credit scores could pay more for coverage.
Not a Myth: Talk to the Experts
One thing that isn’t a myth is that working with an experienced, professional insurance broker specializing in auto insurance will help you understand the policies on offer, understand the coverage you really need, and get you a better deal on that coverage before you sign up.
Contact Arthur Blake Insurance, specializing in home, auto, personal, and commercial insurance in the state of Texas for over 25 years. Join us for a free consultation on all your coverage needs before you purchase a policy that will cost you too much out of pocket, only to not be there for you when you really need it.