Car insurance is one of those things that everyone seems to have an opinion about. You might hear your friends or family members talking about how they believe that car insurance is a waste of money or that it's not necessary.
However, the truth is that car insurance is a crucial part of owning a car. It is a requirement in many states, and it can protect you financially if you're involved in an accident.
Auto insurance quotes can vary significantly from one company to the next, so it's important to shop around and compare rates before buying.
But, there are many myths and misconceptions out there about car insurance. In this post, we will debunk some of the most common car insurance myths.
Debunking The Myths
Myth #1. Red Cars more to Insure than Other Colors
One of the most common myths about car insurance is that red cars are more expensive to insure than other colors. This myth is that red cars are more likely to get pulled over by the police.
However, the auto insurance Corpus Christi company doesn't factor in the color of your car when determining your premium. Because the insurance companies use actuarial tables when setting rates, there is no data to support the allegation that red cars are more likely to get pulled over.
So don't be concerned about acquiring a fire-engine red vehicle. Instead, if you enjoy the color red, go for it without thinking about your insurance rates.
Myth #2. Your Insurance Will Cover the Cost of Damage to Your Car If You are in an Accident or a Tree Falls On It
This is a dangerous misconception. The fact is that damage to your vehicle will be covered only if you add collision and comprehensive coverage to your policy. Collision coverage will pay for damage to your car if you're in an accident, and comprehensive coverage will pay for damage caused by floods, fires, and falling trees.
If you only have liability insurance, your policy will not cover any damage to your vehicle. So, it's important to understand the limits of your coverage to be prepared financially if you're ever in an accident.
Myth #3. My Belongings will be Covered If They are Stolen From My Car
Another common misconception is that your belongings will be covered if stolen from your car. However, this is not the case. Your insurance policy will only cover damage to your vehicle, not your personal belongings.
If you want your belongings to be covered, you'll need to add renters or homeowners insurance to your policy. Your belongings will be covered if stolen, damaged, or destroyed in a covered event like a fire or flood. Homeowner's insurance quotes can vary significantly, so shop around and compare rates before you buy.
Myth 4. My car is Covered Under Comprehensive Coverage, Which Will Handle Any Mechanical Issues
This is not true. Comprehensive coverage will only pay for damage to your car caused by events like floods, fires, or falling trees. It will not cover any mechanical issues that you have with your car.
For example, if your engine blows up, you'll have to pay for the repairs yourself. However, if your car is totaled in a covered event, your comprehensive coverage will pay for the value of your car.
Myth 5. Newer Automobiles Will Cost More to Insure
This is another myth based on the assumption that newer cars are more expensive to repair. However, this isn't always the case. It's largely dependent on the year, make, and model of the automobile you're insuring.
So, if you're in the market for a new car, ask your auto insurance El Paso company's agent about the rates for the specific models you're considering. You may be surprised to find that some newer cars are cheaper to insure than older ones.
Myth 6. Purchasing Insurance Online is Less Expensive and More Convenient
It's sometimes more convenient to deal with an agent than an automated response. A reputable auto insurance agent in Beaumont, TX, can ensure that your automobile is fully protected and not underinsured, so you'll spend less money if you have a claim.
Obtain insurance through the internet but don't have enough coverage or the sort of coverage you need. Your online insurance might be more expensive in the long run because you'll be responsible for any losses. But, a knowledgeable person is always worth the price. They advise you on the coverages you need for your particular situation.
Myth 7. If My Vehicle is Destroyed, the Rest of My Loan Will be Paid off by the Insurance Company
No, not precisely. The auto insurance company in Brownsville will pay you the actual cash value of the vehicle when it was destroyed. However, if the ACV of your vehicle isn't enough to cover everything on your loan, you'll have to pay the difference yourself. The best way to be sure your loan is paid off if your car is totaled is to add GAP insurance to your policy.
GAP insurance pays the difference between the ACV of your car and the amount you still owe on your loan. It's important to have coverage if you're financing a new or expensive vehicle.
Myth #8. Smaller Vehicles are Less Expensive to Insurance
The cost of your small vehicle's insurance may be influenced by the sort of coverage you have. Collision coverage, in particular, can be more expensive for smaller cars because they may have additional damage after being affected in an accident with a larger vehicle.
Myth #9. If I Can't Get my Car Out of the Way After an Accident, It'll be a Total Loss
Auto insurance companies in Harlingen assess whether a vehicle is a total loss based on the cost of repairs compared to the car's value. If the repairs are more than a certain proportion of the car's worth, it may be declared totaled.
However, if you can move your car out of the way after an accident, it may not be totaled. This is true if the damage is localized and doesn't affect the safety or drivability of the vehicle.
Myth #10. If I Get an Out-of-State Driving Ticket, it Won't Come with Me When I Return Home
This is a myth. Your driving record will follow you no matter where you go. So, if you get a speeding ticket in another state, it'll likely show up on your driving record at home.
This is why it's essential to be a safe driver no matter where you are. If you have scored more on your driving record, you could face higher insurance rates or even have your license suspended.
Myth #11. The Insurance Company Is Only Concerned with my Driving Record
It's not quite as simple as that. The insurance company will also look at other factors, such as your age, gender, and the type of vehicle you drive.
Myth #12. I'm Not Concerned About My Older Automobile Being Stolen. Who Would Want to Thieve a Car That Isn't New?
In reality, older cars are easier targets for theft than more recent vehicles. Thieves may receive more money for old-model automobile components, so it's important to know about these tactics. But, older vehicles are typically easier to steal, so your car is ancient doesn't mean you shouldn't be concerned about it being stolen.
Read here to know: Everything you need to know about auto insurance deductibles.
These are a few of the many myths about car insurance. It's important to be informed about your coverage to make the best decision for your needs. You should always contact a qualified auto insurance agent to ensure you have the coverage you need. By asking for auto insurance quotes, you can get the best rates for your particular situation.