Can you guess what they are?
When it comes to car insurance , there are many misconceptions. And we’ve already covered a few in this blog. Here are some more of the most common, and what the real facts are. Before you consult with an insurance agent, it’s a good idea to be well-informed so you can separate fact from fiction.
Myth #1: Smaller cars are cheaper to insure.
Actually, vehicles like minivans and mid-size SUVs are cheapest to insure. Small cars are typically driven by younger drivers, who tend to be more costly to insure because of their driving records. So don’t choose a car based on an erroneous idea of how much it will cost to insure.
Myth #2: Comprehensive Auto Insurance means that everything is covered.
Not quite. It only pays for specific problems—collisions with animals, vandalism, car theft, weather damage and other things.
Myth #3: Red cars cost more to insure.
Even though we’ve mentioned that you might get stopped for speeding in a brighter color car because you’re more visible, the color of your car is not a factor affecting your insurance rates.
Myth #4: If you cause a crash, your car insurance company will cancel your policy.
There are laws prohibiting companies from canceling policies mid-term. They have to wait until the policy period is up to send you a nonrenewal notice should they choose not to insure you anymore. They can, however, cancel your policy any time for not paying your premiums.
Myth #5: If someone else drives your car and gets into an accident, their insurance will take care of the cost.
No. Car insurance follows the vehicle, not the driver. Any accident in your car will affect YOUR insurance rates. So think twice about whom you let drive your car!
Myth #6: Car thieves prefer to steal new cars.
Actually, older cars are more valuable to car thieves because they can sell more parts individually and make a bigger profit.
Myth #7: There is a 30-day grace period after your car insurance lapses.
No. After the date of cancellation on your insurance policy notice, there is no grace period. And a lapse in coverage can negatively impact your rate, depending on the length of time you go without being covered.
Myth #8: Personal auto insurance covers you when using your car for business purposes.
If you use your car regularly for work—hauling supplies or visiting clients—you may need separate Commercial Auto Insurance.
Myth #9: The state minimum auto coverage protects you from personal liability in an accident.
Getting the minimum that your state requires will satisfy the requirement, but it may not cover all of your costs for bodily injury if you’re at fault in an accident. You will be held responsible for any outstanding costs.
At Zawada Insurance Agency, we’ll help you shop around to find the best deals on car, home, and other types of insurance—including bundling, if it helps you to save more.
Zawada Insurance Agency, Inc. is a family-owned and operated independent insurance agency, located in Worcester, Massachusetts, serving central Massachusetts and beyond.