Auto insurance is an essential part of protecting yourself and your assets while on the road. BUT with so many options and factors to consider, it can be tricky to navigate. Here are five common auto insurance misconceptions, and the facts behind them:
Myth #1: Red cars are more expensive to insure. False. Your car’s color has no impact on your insurance rates. The factors that are considered when determining your rates include the make and model of your car, your driving history, your age, and your location.
Myth #2: Your credit score doesn’t affect your insurance rates. False. Your credit score is a factor that is considered when determining your insurance rates. Insurance companies use credit scores as an indicator of risk.
Myth #3: Once you file a claim, your rates will automatically go up. False. Whether or not your rates will go up after filing a claim depends on a variety of factors, including the cause of the accident, the amount of the claim, and the insurance company’s policies.
Myth #4: You only need the minimum liability coverage required by law. False. The minimum liability coverage required by law may not be enough to protect your assets in the event of a serious accident. It’s important to consider purchasing higher limits of liability coverage to ensure that you’re fully protected financially.
Myth #5: You don’t need insurance if you’re a safe driver. False. Even the safest drivers can be involved in accidents, whether caused by another driver or by factors outside of their control. Without insurance, you’ll be responsible for paying for any damages or injuries caused in an accident, which can be financially devastating.
Auto insurance can be complicated, but by understanding the facts and common misconceptions, you can make informed decisions about your coverage and ensure you are properly protected on the road.