You may or may not have auto insurance. But you must have come across certain statements about auto insurance from those around you that have made you wonder, ‘Is this true?’ Misleading information might cost you later on, when you go out to buy auto insurance for your vehicle. So, you need to gear up for yourself and search out the truth behind the statements that you have come across.
Auto insurance myths
Auto insurance is indispensable for all the vehicle owners. Most of the US states have made auto insurance coverage mandatory for their residents. If you have your own vehicle or even if you’re driving a rental car, you must know the basics about auto insurance. However, those basics must revolve around the facts and not on fiction.Myth 1 - The minimum coverage imposed by the state auto insurance laws is enough.
This may not be the truth. Your auto insurance needs are definitely going to vary from another vehicle owner, and you can customize your auto insurance coverage accordingly. The state laws only specify the minimum limits of coverage. You’ll have to bear the additional costs if your insurance denies paying for all the damages after an accident, stating that you don’t have enough coverage. It is better to be safe than sorry.Myth 2 - You don’t need to insure old cars.
Haven’t you heard about classic car or antique car insurance? The value of classic cars increases with time, and thus they need to be insured for protection. Old cars are easier to steal as well. Even if not as a whole, a stolen old car can be sold in parts in the market. Besides, can you actually predict what is going to be the preference of a thief?Myth 3 - Auto insurance is no way related to your credit report.
The insurers determine your financial stability by checking your credit report. Your payment histories reveal how regular you had been in your previous financial dealings. The rates on your auto insurance policy are thus influenced by your credit report.Myth 4 - Auto insurance rates will be same for you and your neighbor.
Not necessarily. Auto insurance rates are influenced by several factors. Even if you buy your insurance from the same insurer, the rates are never going to be the same for you and your neighbor. It is because of the variation in your age, driving records, the model or type of the car, etc.Myth 5 - Your auto insurance policy will cover you from all kinds of damages.
This is definitely not the case unless you have comprehensive and collision coverage. The extent of your auto insurance coverage depends on your individual policy terms. A person with collision coverage cannot make a claim if his car gets stolen. In such cases, only a comprehensive coverage will lend financial assistance. There are several other misconceptions regarding auto insurance as well. While some think that the color of the car affects auto insurance rates, others get anxious that a parking ticket will increase the rates for his auto insurance policy. Before you blindly believe what anyone says about auto insurance, it’s advisable to look beyond the statement and verify the truth yourself.Blog Category