The 5 Biggest Car Insurance Myths
5 Car Insurance Myths
Let’s face facts. Buying car insurance is not the highlight of our day, but we are glad we have it when the unexpected happens. There are some common misconceptions regarding auto insurance that can result in you paying too much for insurance, or not having right coverage, leaving you to foot the bill. It is time to set the record straight.
Myth #1 Car insurance follows the driver
Be cautious about letting others borrow your vehicle. If that driver is involved in an accident, it is your insurance that will cover the damages. In other words, insurance follows the vehicle, not the driver.
Myth #2 My auto insurance will pay for items stolen out of my vehicle
Car insurance, even comprehensive coverage, does not cover personal items left in a car. Personal items may be covered under homeowners or renters policies, but you should consult your insurance agent to verify your coverage.
Myth #3 My insurance company will provide me with towing and a rental car
in the event of an accident
Towing and rental costs are not automatically covered, even under full-coverage insurance. Towing and rental coverage are typically added to an insurance policy through specific riders at an additional cost.
Myth #4 A comprehensive or full coverage insurance policy will even cover mechanical breakdowns
A comprehensive insurance policy covers damage, such as theft or hail, not resulting from an accident. Any mechanical issues are your responsibility if not covered under your vehicle warranty.
Myth #5 A newer, red vehicle is the most expensive to insure
The color of the vehicle has no bearing on your rate. Auto insurance companies base their rate on several factors including make, model, the driver’s age and driving record, and the popularity of the vehicle among car thieves.