5 Auto Insurance Myths & Facts You Must Know

Along with this some false auto insurance myths have been passed off as facts, and you may find yourself in a difficult position when you buy a policy.

We consulted with our clients and agents to discover the most common myths people believe. Then we turned them down, so you don’t have to.

5. Red Cars Cost More To Insure

It is absurd to say that insurance costs more for red cars than any other color. Red is associated with danger and speed, but these terms don’t exist in auto insurance.

It doesn’t matter if you are a safe driver. Premiums will be the same. Red cars are not more expensive to insure than other colors.

4. You Can Lose Your Auto Insurance at any Moment

An auto insurance myth that has been around for years is that you can lose your insurance if you are involved in an accident, get a speeding violation or violate your contract. This is also false.

Auto insurance companies cannot cancel your policy before the term ends unless you are caught engaging in fraud or have not paid your premiums. If you pay your premiums in time and avoid fraud, your auto insurance will continue for the term of your original agreement.

Auto insurance companies can be trusted to protect drivers by adhering to these laws. Your auto insurance company cannot cancel your policy if you are cited for speeding or in an accident. However, they can renew your policy if it expires.

3. No-Fault Auto Policy Means That It is Not My Fault

It doesn’t necessarily mean the accident wasn’t your fault. This means that your auto insurance company must pay for your medical bills and lost wages up to a certain dollar amount if you are involved in an accident.

Auto insurance with no fault covers only medical bills. It won’t cover property damage if an accident was at fault. It won’t pay for repairs if someone else is at fault or doesn’t have insurance. This would be the obligation of uninsured driver coverage.

2. You Can Have Someone Else Drive Your Car, and Their Insurance Will Cover Any Damages.

You might want to consider the impact it could have on your auto insurance if you let your friend drive, or if you let someone borrow your car while you are tired from a long trip.

Your vehicle is covered by your auto insurance policy. Their auto insurance covers their vehicle. Their auto insurance doesn’t cover any damage that may occur just because they are driving your car.

Your auto insurance policy covers the driver of your car. Your auto insurance policy will cover your friend if they get into an accident in your car.

1. Auto Insurance Becomes More Expensive as You Age

While there is a strong correlation between age and insurance premium costs, it doesn’t necessarily mean that you will pay more for insurance as your age increases. It is quite the contrary. From ages 17-64, the average cost of auto insurance actually drops annually.

Auto insurance premiums increase once you reach 65. However, there are some discounts that you can obtain at this age to offset the increased cost.