When it comes to car insurance, there is a lot of misinformation going around that often passes for fact.
So let’s separate the myths from the facts. Here are some of the most popular misconceptions:
Myth 1: Vehicle color determines auto insurance rates.
It doesn’t matter if your car is red, black, or champagne. What does matter, however, is the type of car you drive. The price of your auto policy is based on factors such as make, model, body type, engine size, vehicle age, value, potential cost to repair, and safety rating — not to mention the background of the driver!
Myth 2: Your credit score never affects your insurance rates.
Many insurance companies take your credit score into consideration when you’re looking to purchase or renew your auto insurance policy. A good credit score indicates that you properly manage your financial affairs. Those with a higher score often end up paying less for insurance.
Myth 3: Your personal auto insurance covers business use of your car.
If you use your vehicle for business purposes, personal auto insurance does not protect you. In these cases, it is crucial that you purchase a commercial auto policy.
Myth 4: If someone else gets into an accident while driving your car, you are not liable.
Contrary to popular belief, the auto insurance policy covering the vehicle is usually always considered the primary insurance, meaning that the vehicle owner’s insurance must pay for damages caused by an accident, regardless of who is driving. That’s right — car insurance follows the car, not the person.
Myth 5: The older you get, the higher your auto insurance rates.
It usually trends the other way, actually. Plus, older drivers may be eligible for special discounts.
Myth 6: You only need the minimum amount of auto liability insurance required by law to be safely insured.
Only buying the minimum amount of liability means you are likely to pay a lot more out-of-pocket for losses incurred in the event of an accident. It is generally recommended to hold a minimum of $100,000 of bodily injury protection per person and $300,000 per accident.
Myth 7: Your auto insurance will cover you if your car is stolen, vandalized, or damaged by hail, flood, fire, or fallen trees.
You need to have collision and comprehensive coverage, in addition to your standard policy, to fully protect your vehicle from all types of damage.
Before you can get the best value for your auto insurance, you need to know the facts!
For more information, please contact us at 845-986-1177. We are your business, home, auto, and life insurance solutions provider and partner, serving Warwick, Greenwood Lake, Florida, Pine Island, Goshen, Middletown, Chester, Monroe, Newburgh, Orange County, and the Hudson Valley and Tri-State Area.