5 Common Car Insurance Myths

For unknown reasons, there are many misconceptions about vehicle and auto insurance. So, when it comes time to choose or upgrade your plan, the process can be rather challenging.

Understandably, you want to be able to separate fact from fiction before you invest in one of your highest yearly costs. Luckily, all of the tales have straight answers.

In this article, we are going to talk about just five of the most common car insurance myths.

Interested in learning more? Then keep on reading!

Myth One: There is no way to reduce my car insurance cost.

Most people assume that all car insurance costs the same, but this is far from the truth. Every company sets its own prices, and there are many things you can do to try and reduce the expense without sacrificing coverage.

Myth Two: My credit history and score isn’t essential.

There are many different factors that are taken into consideration when a company calculates the cost of insurance. Your credit history is one of them.

You’re considered high risk if you have a low score, as you are potentially more likely to make a claim. This is why managing your finances is so important. 

Myth Three: The color of the car impacts insurance cost.

One of the most well-known myths you may have heard when choosing car insurance is that the car’s color will impact the cost. Red seems to be the most concerning, but this is entirely false.

While the age, make, model and vehicle type will affect what you pay, the general color is not taken into consideration. It’s not about looks but about how expensive it would be to replace parts.

Myth Four: My insurance plan will cover everything. 

You can’t umbrella every single insurance plan into the same category. The fact is, there are many types, and each provides specific amounts of coverage.

It’s important to know what you are protected against by carefully researching and reviewing what is offered by your chosen company. Otherwise, you may find that you will have to pay sudden expenses out of pocket.

Myth Five: Other drivers will be covered by my insurance.

Unless you add another person onto your insurance policy, you will be entirely financially responsible for any accidents that they get into while driving. You can’t just assume that your coverage will apply to them.

You might want to think again before taking the blame as well. Being found guilty is a crime, which will make the entire situation much more complicated.

If someone you know will be driving your car regularly, pay the extra on your policy. It’s just not worth the risk.

Final Words

And that’s it! These were just five common car insurance myths. Now that you know what is true and what is false, you can start looking at different options and figuring out strategies to reduce your cost.