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Common Auto Insurance Misconceptions

Myth #1: A Small Car is Cheaper to Insure than a Large Car

  1. Lighter weight

  2. Less protective features

  3. Driven by younger drivers

  4. Commonly stolen (especially older models) Since they have a higher risk of damage, insurance companies make their auto insurance rates higher for these types of cars.

Myth #2: A Red Car is More Expensive to Insure than Neutral Colors While red cars may get more speeding tickets, the color of your car will not impact your insurance rate! Insurance companies don’t factor in car color when they calculate your rate.

Myth #3: Carjackers Prefer to Steal New Cars Actually, car thieves often go for older models. Most thieves steal for the parts, not the entire car. Since there are more opportunities to sell parts with common, older vehicles, they are considered more valuable. Some thieves will take new models to sell, but most stolen cars will just go to a chop shop.

Myth #4: If Someone Else Drives My Car and Gets in an Accident, Their Insurance Covers It. The primary insurance for an accident covers the vehicle, NOT the driver.  Most standard car insurance policies cover “permissive use”, which means that if you loan your car to someone, they’ll be covered by your insurance. That means in case of an accident, the claim will appear on your car insurance policy and will affect your rates. It’s good to note that if your insurance doesn’t cover all the damages, then the other driver’s insurance will help out. Also, if it’s not your friend’s fault, then your insurance won’t be affected. It’s only if the person you loaned the car to is at fault in the accident.

Myth #5: Once You Hit 55, It Costs More to Insure Your Car Not necessarily. In most cases, it’s the opposite. If you’ve had a clean driving record and you hit 55, you’ll qualify for a discount for completing an accident prevention course. Also, if you’re driving less after retirement, your auto rates could go down significantly.

Myth #6: Comprehensive Auto Insurance Covers Anything Related to Your Car Unfortunately, “comprehensive” auto insurance is a misnomer. Comprehensive coverage will pay for collision damage, theft, and vandalism, it may not pay out in all circumstances. You may need extra coverage for business-related activity, renting a car, towing, and damage from certain natural disasters. Check with our agents to see what your policy covers, and more importantly, what it does not cover.

Myth #7: You Can Prevent Your Insurance Rate from Rising if You Don’t Report an Accident This may or may not be true. If you get into a collision with another driver, then there isn’t anything you can do to prevent them from filing a claim. Their insurance company will notify yours and your premiums may increase. Also, if police showed up at the scene and issued any tickets, those will show up on your driving record and activate a rate increase.

Questions? Get in Touch with Our Insurance Agents If you have further questions about your auto insurance policy, then please don't hesitate to contact our insurance agents at your earliest convenience. We're more than happy to read through your policy and explain the particulars. Our specialty is making sure that you, the customer, understand the nuances of your insurance coverage and have the best possible plan!

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