Most drivers are aware that the rates they pay for auto insurance are a result of factors such as their driving record, the type of car, van, truck or RV they own, the distance of their commute, and various demographics like their age and gender.
But there are also lots of myths about vehicle insurance that, in some cases, could end up costing them substantially more than the premium.
Let's shine the light of truth and dispel all 8 myths right now!
Auto Insurance Myth #1:
A Red Car is the Most Expensive to Insure
Although this myth has persisted for many years, there is no basis for it. The sticker price of your car, its safety record, the cost to repair it, and the likelihood of theft are all considered in the premium. The color makes no difference. Simply put, the premium on a silver Mercedes 260E will be higher than on a red Honda Civic.
Auto Insurance Myth #2:
Older Drivers Pay More to Insure their Vehicles
The truth is that senior drivers (usually 55 and over) have the opportunity for discounts that may not be available to younger drivers. Both AAA and AARP offer defensive driving courses for mature drivers. These may be taken online and, upon successful completion, could result in as much as a 10% reduction in your vehicle insurance premium.
Auto Insurance Myth #3:
When it Comes to Car Insurance, Credit Score is not Important
Actually, it is very important. Almost every insurance company uses a credit-based insurance score to determine eligibility and premium rates, and it is based, in whole or in part, on the information found in your consumer credit report. For most people, a good credit score will translate into lower insurance rates and vice versa.
Auto Insurance Myth #4:
If Your Car is Stolen, Damaged, or Vandalized, You Will be Covered
Not necessarily. Comprehensive vehicle insurance, which covers theft, vandalism, and an array of non-collision damages to your car, is optional coverage. Many drivers choose not to carry this on an older car as a way of saving money. Keep in mind that if a car is to be fully protected, both collision and comprehensive coverage need to be in force.
Auto Insurance Myth #5:
The Minimum Amount of Auto Liability Insurance Required by Law is Sufficient
State minimum liability requirements don’t come close to covering the cost of a serious accident. The old idiom “penny wise and pound foolish” applies here. Saving a few dollars a year on inadequate coverage may end up costing thousands more. Actual liability coverage limits should be four to six times higher than the state minimum.
Auto Insurance Myth #6:
If Someone Else Drives Your Car, Their Insurance Will Cover Them in an Accident
In most states, car insurance travels with the vehicle. So remember, if you’re loaning out your car, you’re agreeing to take responsibility for that driver. Your rates may be at risk if the driver has an accident.
Auto Insurance Myth #7:
Members of the Military Pay More for Insurance
This is not the case. In fact, many insurance companies offer savings to active members and veterans of the armed forces and their families. This makes sense since, statistically, members of all branches of the armed services are responsible, law abiding and safe – all traits that make them a lower risk.
Auto Insurance Myth #8:
Personal Insurance Covers Both Personal and Commercial Use of Your Vehicle
Proceed with caution here. If you are self-employed and use your vehicle under a personal policy, you risk having a claim denied. The rules that determine what constitutes commercial vehicle insurance vs. personal insurance use are complex. Make sure you are covered under the proper policy for your situation.
Get the Facts - Get the Best Car Insurance to Meet Your Needs and Budget
Now that we've dispelled some common myths of auto insurance, give us a call to learn more at (800) 947-1270 or (610) 775-3848, or click here to contact us. We'll help you obtain reasonable premiums without sacrificing vital coverage.
We're independent agents who offer car insurance policies from competing insurance companies. That means we can find you the best insurance at the best price. We've been serving the vehicle insurance needs of Reading, Philadelphia, Allentown, Harrisburg, Lancaster, Pittsburgh, Erie, PA and beyond for over 25 years. Call today.