Knowledge is power. Many people who have car insurance sometimes get caught up in old wives tales, and false rumors. We’d like to clear up a few of these tall tales and put these rumors to rest. Here are the top 5 Car Insurance Myths.
Myth 5: Your policy covers you if you drive the car for business
Personal auto insurance does not protect you if you are self-employed and using your vehicle for business purposes. Take for example food delivery drivers. They are not covered by the company’s insurance policy. If they have an accident while making a delivery they are on their own. Their personal insurance will most likely deny any claims.
Myth 4: Soldiers pay more for insurance
That makes sense right? Nope, it’s actually it’s just the opposite. Members of the military qualify for a discount on their auto insurance. In most cases, they’ll need to document their rank and how long the will be serving.
Myth 3: Your insurance policy covers any damage to your car
If only that were true. It actually works like this. Liability insurance covers you if you hurt someone or damage their property. Comprehensive and collision coverage protect your vehicle. If you want to fully protect your vehicle for all types of damage, you need to purchase both collision and comprehensive coverage.
Myth 2: Older drivers pay more for car insurance
Well certainly life insurance goes up with age, but not necessarily auto insurance. Many drivers who are 55 or older can get their rates reduced, by up
to 10 percent for three years if they successfully complete an accident prevention course. Of course you would have to check with your insurance agent to find defensive driving courses that are approved by your insurer. Also if you are retired or no longer working full time, see if you qualify for a discount based on driving less.
Myth 1: Red cars cost more to insure
We all believe that owners of red cars drive more aggressively and get more speeding tickets. Truth be told there’s no data to back this up. Insurers are not concerned about color and neither is law enforcement. Insurance companies do care about the type of vehicle you drive, including the make, model, sticker price, engine size and year. Is it popular with thieves? Is it more costly to repair? Does it have a good safety record? Other factors that go into determining your premium: how many miles you drive each year, when you drive, where you drive and if you’ve had any previous accidents. These days your credit history is also considered. Insurance companies say their data show people with a good credit history are less likely to file a claim.
Now that that’s out of the way we can get serious and talk about some myths that are definitely true: Bigfoot, The Loch Ness Monster, Aliens, and the Jersey Devil.