Auto Insurance Myths

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1. Red cars have higher premiums. The color of your car will usually not impact your low auto insurance rates. Most insurers don't even ask what color your car is when you apply for quotes.
2. Your rates will skyrocket after one speeding ticket. One speeding ticket may raise your low auto insurance rates, but not usually. In most cases, it takes two speeding tickets before your rates will increase.
3. I just need the bare minimum amount of coverage. Most states have minimum mandatory insurance requirements, but these minimums might not cover all your expenses if you are in an accident. For instance, if you are sued over an accident for which you are at fault, your financial assets could be put in jeopardy.
4. Cheaper cars are cheaper to insure. It is true that cheaper cars typically have low auto insurance rates for comprehensive coverage. However, if your cheaper car has a large engine, is an uncommon model, or is very heavy, it might cost more to insure than a more expensive small car.
5. If someone else is driving my car at the time of an accident, I am not responsible. You can still be held financially responsible for an accident if someone else is driving. Most states have laws that consider the policy covering the vehicle the primary insurance, which means that the insurer covering the vehicle must pay for damages in the event of an accident.
6. Older cars are cheaper to insure. Older cars do not necessarily always have low auto insurance rates. The rates for any vehicle depend on many factors, including who drives it and its annual mileage. Drivers of older cars may get low auto insurance rates by dropping comprehensive coverage because older cars usually have little to no cash value.
7. My car insurance rates will be similar to those of other drivers in my area. Location is only one factor that will influence your low auto insurance rates. Factors like age, marital status, driving record, and make and model of the vehicle will also influence your premiums.
8. Comprehensive coverage provides protection in all non-collision situations. Most policies on which you receive low auto insurance rates will include comprehensive coverage that will pay for damages in very specific non-collision-related incidents. For example, comprehensive coverage usually pays for damages caused by weather (hail, floods, etc.), fire, theft, vandalism, animals, and falling objects.