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.
If you own a fleet of vehicles that are used exclusively for your business or you own a freight truck or delivery truck, you probably understand that you need commercial vehicle insurance on those vehicles. But what if you have one vehicle that you use to deliver pizzas? What if you use your personal vehicle to drive to job sites or to meetings?
Smart business owners know that insurance is important to protect their business and assets. But, knowing which ones are right for your business can be a challenge. No one wants to be caught without the right 
These five business insurance questions are a great starting point for any business owner, but you don’t need to go it alone. The advice of a trusted and experienced independent insurance agent from American Insuring Group can help ensure that you obtain the right insurance at the right price for your business. 
Whether your company owns one commercial vehicle or an entire fleet of vehicles, regular vehicle maintenance is one of the best things you can do to protect your employees, your property, and your business.
Picture this: a pizza delivery guy, a shuttle driver (sole-proprietor of the business), and an independent landscaping contractor collide into each other at the intersection of First and Main.
Personal vehicle insurance
Be honest! Did you make any New Year’s resolutions this year? If you did, you weren’t alone. According to Statistic Brain, 45% of Americans “usually” make New Year’s resolutions, and according to Constant Contact®, 53% make business-related resolutions. 
Too Busy to Assess Your Risk?
Although each insurance company has different guidelines for determining to what extent your personal vehicle may be insured when used for commercial purposes, it is nonetheless risky to assume your personal vehicle will be properly covered, if it is covered at all. Rather than taking chances, consult an independent insurance agent to learn the details of your coverage, and to select the best insurance company and policy to meet your commercial insurance needs.
Not really. Anyone can apply to insure a commercial vehicle, (for example, a van), but they will find they are restricted when it comes to personal or private use of that vehicle. As long as the vehicle falls under commercial use, like delivering goods or providing a service (say, if the owner is a builder just using the van to get from A to B) then it is much easier to obtain insurance than if the applicant also wanted the vehicle for private use.
When looking into insuring a company car, van, or pickup, you will find commercial vehicle insurance and regular auto insurance are entirely different animals. But although the products available differ greatly, the basic principles apply when it comes to finding the best policy for a particular small business – be it auto insurance for a private, or commercial vehicle. 
