wait, really? Top 10 car insurance myths
This is a guest post from Miles Walker from Car Insurance Comparison. While it may seem odd having a guest post about car insurance on my blog, I’m very interested in things like—especially when it deals with dispelling popular misconceptions.
Take the time to understand the top 10 car insurance myths to save yourself time, money, and headaches. Car insurance is a difficult road to navigate and you want to get the most coverage for your dollar.
- Military Personnel Pays Higher Premiums. There is a myth that military personnel pay higher premiums. This is not only untrue, but the opposite is usually true. Many insurance companies offer discounts to those in the military, rescue, law enforcements and teaching fields.
- Red Cars Cost More to Insure. Another myth is that the color of the car, primarily red, is more expensive to insure. This myth was fueled by the cost of repairs paint colors that were difficult to match. The reality is insurance companies do not take the color of your car into consideration.
- The Older You Are, the Higher the Premium. This is completely untrue, and usually premiums can go down with age. Each insurance company is different, so different age thresholds may need to be met.
- One Insurance Policy Covers a Work & Personal Use Vehicle. This is untrue. Your personal car insurance policy does not cover your vehicle for business use. You need to add a rider, or consider a secondary policy to be covered for business use.
- Old Cars Don’t Get Stolen. This is a terrible assumption. In fact, older or classic cars may be more attractive to a thief if they are worth more, or easier to break into. Comprehensive insurance is always recommended and if you don’t spend a significant amount of time and money on upgrading or aftermarket work, consider classic car insurance instead.
- Luxury Car Owners Pay a Higher Premium. This myth is based on the myth that luxury car owners get more tickets, but this has been found to be completely untrue. In fact, the highest number of tickets are shown to be drivers of Hummers, followed by drivers of Scions.
- Insurance Will Pay for a Rental. Your insurance company may not pay for a rental in the event of theft or damage, even if you have comprehensive and collision coverage. It’s important to read your policy carefully and ask for add-ons if you feel you need them.
- Insurance Will Pay Off the Loan. Some believe that their insurance company will pay off the balance of their loan if the vehicle is totaled. This is a car insurance myth. The truth is that if you have comprehensive insurance and your car is totaled the insurance company will define the value of your car pre-accident and give you the cash for it. You can purchase GAP insurance to help take care of the remainder of your loan.
- Tickets Will Increase Premiums. This isn’t entirely true. It depends on the situation. If you have an otherwise clean record and the ticket is minor, your insurance company will likely leave your rates alone.
- Personal Property is covered. Many believe the personal property in their car is covered in the event of theft. This isn’t necessarily true. Your car is the covered entity, not your belongings. You can cover those items under your home or renters insurance policy.
The top 10 car insurance myths can hold you back from getting the coverage you need. Always talk with your car insurance agent about any concerns you have and ask about riders or add-on insurance that can help cover the concerns you have.