The most common car insurance myths debunked

Car insurance is a necessary expense for drivers, but it can also be a confusing and misunderstood topic. There are many myths and misconceptions surrounding car insurance that can lead to misinformation and poor decision-making. In this post, we’ll explore and debunk some of the most common car insurance myths.

Myth #1: Red cars cost more to insure

One of the most persistent car insurance myths is that red cars cost more to insure. However, this is not true. Insurance companies do not consider the color of your car when calculating your premium. Instead, they look at factors such as your driving record, the make and model of your car, your age, and your location.

According to a study by Quadrant Information Services, the color of your car has no impact on your insurance premium.

Myth #2: Minimum coverage is sufficient

Another common car insurance myth is that minimum coverage is sufficient. However, minimum coverage may not be enough to protect you financially in case of an accident. Minimum coverage typically only covers damages and injuries you cause to others, and it may not cover damages to your own vehicle or medical expenses.

According to the Insurance Information Institute, minimum coverage may not be enough to cover the costs of a serious accident.

Myth #3: New cars are more expensive to insure

Many drivers believe that new cars are more expensive to insure than older cars. However, this is not always the case. While new cars may have higher sticker prices, they often come with advanced safety features that can lower your insurance premium.

According to a study by ValuePenguin, new cars may actually be cheaper to insure than older cars due to their safety features.

Myth #4: Personal belongings are covered in a car accident

Some drivers believe that their personal belongings are covered in a car accident. However, this is not always the case. Personal belongings in your car, such as your laptop or phone, may not be covered by your car insurance policy.

Personal belongings in your car may be covered under your homeowners or renters insurance policy, not your car insurance policy.

Myth #5: Car insurance follows the car, not the driver

Another common car insurance myth is that car insurance follows the car, not the driver. However, this is not always true. In some cases, car insurance may follow the driver, not the car. In fact, car insurance may follow the driver if they are using a rental car or a borrowed car.

Myth #6: Car insurance covers mechanical breakdowns

Some drivers believe that car insurance covers mechanical breakdowns. However, this is not the case. Car insurance typically only covers damages and injuries resulting from accidents, not mechanical breakdowns or routine maintenance. Mechanical breakdowns are typically covered under a separate warranty or service contract, not your car insurance policy

Myth #7: Your credit score doesn’t affect your car insurance premium

Many drivers believe that their credit score doesn’t affect their car insurance premium. However, this is not true. Insurance companies often use your credit score as a factor in calculating your premium. Drivers with lower credit scores may pay higher car insurance premiums than drivers with higher credit scores.

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Car insurance can be a confusing and misunderstood topic, with many myths and misconceptions surrounding it. By understanding the truth behind these common car insurance myths, you can make informed decisions about your coverage and save money on your premium.

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