Michelle Dixon July 15, 2011 No Comments

Those of us in the insurance business know that most people don’t understand (nor do they want to) the majority of what’s in their insurance policies. And we can’t blame them! Most people simply rely on their insurance agent to make sure the heave the right coverage, which is one of the best perks to an Independent Insurance Agent!

However, there are some misconceptions we believe are important to clear up. We hear them over and over again, so let’s set the record straight!  Here are the ten most common myths we hear about auto insurance, followed by the truth:

1. No-fault insurance means it’s not my fault – No-fault insurance means your car insurance company will pay for medical expenses and lost wages due to a car accident regardless of who is at fault.

2. The color of my car affects my insurance rate – The color of the vehicle means nothing!

3. My friend borrowed my car, so he is responsible for damages – If you give someone permission to drive your car and they crash, it will be your insurance that covers the damages. However, if your auto insurance coverage is maxed out, your friend’s policy can be tapped for the remainder of damages.

4. My auto insurance company can cancel my policy at any time – State regulations prohibit insurance companies from dropping you in the middle of your policy term unless the insurer has adequate grounds to do so. Such grounds could be fraud or not paying your premium.

5. The more expensive the car, the more it costs to insure – Car insurance companies look at the loss history of your vehicle-meaning how many claims they have paid on that model along with how much it might cost to repair. A $30,000 sports car could have costlier claims than a $50,000 SUV, so a sports car could cost more to insure.

6. I got a ticket, so my car insurance rates will skyrocket – A ticket doesn’t automatically mean an increase in rates. If the ticket was minor and your record is otherwise clean, your premium may not increase.

7. If you are at fault in an accident and your rates increase, you can’t get better rates – Shopping around different auto insurance carriers or looking for discounts could save you in this situation. Every insurance company is different in their rates and ways in which they reward customers with discounts.

8. “I don’t need comprehensive insurance (theft) because thieves prefer not to steal old cars” – In reality many criminals are attracted to older and trustworthy vehicles such as a Honda Accord or Toyota Camry.

9. The laptop in my car is covered by my auto insurance policy – Personal property is not covered under an auto policy.  However, if you have homeowners insurance these items will be covered under that policy, subject to your deductible.

10. Credit/claims do not affect my insurance rate – Credit plays a big part of determining your insurance rates along with claims frequency.

If you’d like more information about any of these “myths” or have questions about your auto insurance coverage’s, please feel free email me today at mdixon@seely-durland.com! Never forget that we at Seely & Durland Insurance can help find you the right coverage’s that fits your individual needs. Don’t hesitate to contact us at 845-988-1177 if you ever have questions or need assistance!