Auto Insurance Myths Debunked
When searching for affordable, dependable auto insurance, it’s vital that you really know the facts. Unfortunately, through rumors and speculation, many drivers have fallen victim to believing some pretty crazy insurance myths. Here are a few of our favorites auto myths supplied by FOX Business:
It’s important to remember that no-fault car insurance varies by state. Typically it requires your car insurance company to pay medical expenses and lost wages for injuries due to a car accident, regardless of who is at fault. It allows for faster payment for immediate medical needs while insurance agencies, determine among themselves which company will pay for the accident.
2. “The color of my car affects my auto insurance rate”
Auto insurance companies set rates based on the safety features of a vehicle and how much it costs to repair or replace. The color doesn’t actually factor into the premium.
3. “I don’t need comprehensive auto insurance for theft, because thieves don’t steal old cars”
Many criminals are actually more attracted to older, trustworthy, popular vehicles such as a Honda Accord or Toyota Camry. Since these vehicles are more popular, there tends to be a higher demand for their parts—so naturally thieves can strip them, sell the parts and make some serious cash.
4. “The laptop in my car is covered by my auto insurance policy”
Personal property, such as a laptop or cell phone is not covered under an auto insurance policy; those items may be covered by home insurance, but a claim would oftentimes be subject to your deductible.
5. “I recently paid my insurance premium, so I won’t need a new policy for my new car”
Whenever you purchase a new car, your insurance company will have to issue you a new policy, regardless of when you paid for your previous policy.
Don’t allow yourself to walk around misinformed, it’s crucial that you completely understand what your auto policy does and does not cover.