Myths and urban legends have been around for countless years. Sometimes, they are used as campfire lore to entertain friends and family. However, sometimes a myth becomes so prevalent that it is then mistaken as fact. This certainly happens often when it comes to the topic of auto insurance. So, to help you understand your auto insurance policy a bit more, we’ve debunked five of the most common auto insurance myths in circulation.
Common Auto Insurance Myths Debunked
Myth #1–Red Cars Cost More To Insure Than Other Cars
Your car insurance rate is based on a number of important factors. Out of all the factors considered, none of them is your vehicle’s color. This myth stems from a few different places, all of which we explore in our recent blog on the Red Car Myth. Suffice it to say, you won’t be charged more simply because your car is red instead of white.
Myth #2–Your Credit Score Does NOT Have Any Effect On Your Insurance Rate
Many folks are under the impression that your credit score won’t have any effect on the rate you pay for an auto insurance policy. However, it plays an important role in determining what an individual pays for coverage. If you have good credit, there’s a solid chance you’ll pay less than someone with less impressive credit.
Myth #3–A Basic Personal Auto Insurance Policy WILL Protect Business Use Of Your Car
Sometimes policyholders mistakingly assume that a basic auto insurance policy will keep them covered at all times, even if they’re using their car for business purposes. Unfortunately, that is not how a basic auto insurance policy functions. That’s right, even if you’re just running a quick errand for Postmates, you will not be covered under a basic coverage policy. However, you can retain coverage if you obtain business vehicle insurance for that vehicle.
Myth #4–If Someone Else Drives My Car, Their Insurance Policy Will Cover Them If An Accident Occurs
There are ways to grant other drivers access to your car while still being covered. However, these events are very rarely covered by a basic auto insurance policy. If you’d like to protect another driver at the helm of your car with your coverage policy, there are a couple of different ways to go about doing that. You can add specific drivers to your policy by name, or you can add Permissive Use allowance to your coverage policy. To learn more about how to do that, you can visit our dedicated page on how Permissive Use works and why it’s useful.
Myth #5–Car Insurance Becomes More Expensive The Older You Get
This is another common misconception amongst drivers. However, just because a driver is of an older age does not mean a car insurance company will charge them a higher rate based on that fact alone. In fact, quite the opposite. Younger, less inexperienced drivers are often seen as a higher liability than older drivers. Thus, younger drivers often pay higher rates than older, more experienced drivers.
The benefits of being an older driver don’t just end there. Being an older policyholder can help you obtain endorsements and discounts that can help bring your rates down.
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If you’d like to take a look at more blogs about proper car maintenance or coverage, we have many of them on our website. News articles and blog posts are posted through Insurance Navy on a daily basis, Monday-Friday. Consider taking a look at these insightful pieces before you leave: