Whether you’re trying to figure out what type of coverage you need or how much you really need to spend, there are a lot of auto insurance myths floating around out there. If you’re trying to separate fact from fiction, here are the four most common myths that you can avoid. It is always advised to compare he car insurance rates in order to buy the perfect plan for the insurance policy.
Your Car’s Color Impacts Your Premiums
By now, you’ve likely heard the rumor that insurance companies charge more to insure red vehicles because police pull them over most frequently. This is one of the most prevalent auto insurance myths out there. Keep these tips always handy to avoid common mistakes while making plans for comparing plans online. In reality, insurance companies look at a variety of factors when determining a vehicle’s premium, including:
- Age of drivers
- Age of vehicle
- Cost of repairs for vehicle
- Driver safety records
- Safety features of vehicle.
In some cases, the insurer may also use someone’s credit score to set a premium. Color of vehicle, however, didn’t make the list.
Theft Coverage Is Unnecessary for Old Vehicles
It’s a common misconception that car thieves only target the newest and hottest vehicles on the road. While any car or truck could become the target of an auto thief under the right circumstances, the reality is that older vehicles are often targets. In many cases, car thieves will specifically target older vehicles of the most popular and reliable makes and models, because they can make serious money stripping them for their parts.
If your older vehicle is stolen, and you didn’t opt for comprehensive theft coverage on your auto policy, you may be stuck footing the bill all by yourself.
If a Friend Wrecks Your Car, His or Her Insurance Will Cover It
Another of the popular auto insurance myths that simply won’t die is that your friend’s insurance covers him or her if he or she gets into an accident while driving your vehicle. This isn’t the case. Typically, auto insurance follows the vehicle, not the driver. So before you pass your keys to a friend who wants to run a quick errand, take a moment to consider how responsible they really are behind the wheel.
That said, if the accident is particularly bad and maxes out your insurance’s coverage limits, your friend’s auto insurance policy could be hit for anything above and beyond what your insurer was able to cover.
Using Your Personal Vehicle for Business Purposes Isn’t a Big Deal
Of all the auto insurance myths out there, this one has the potential to sting everyone, from part-time pizza delivery drivers to office managers who run regular errands for their employers. If you’re using your vehicle for business purposes – like hauling company supplies – and you get into and accident, your personal auto insurer doesn’t have to pay the claim. To cover yourself when using your personal vehicle for business, it’s necessary to purchase a separate business auto insurance policy. Always make a habit of comparing car insurance rates in order to avoid duping by self centered insurers these days.
Of course, there are exceptions. In addition to your typical commute to work, you’d also be covered if you got into an accident while driving to an offsite meeting or after-hours networking function.
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