Top 7 Car Insurance Myths

Top 7 Car Insurance Myths

Don’t Fall for These!

Everyone wants to lower their car insurance costs. It’s important to get the facts straight before you contact your auto insurance provider, because there are a number of myths circulating that have no basis in reality. Check out the following most common myths, and let’s separate fact from fiction.

Myth #1:  The older you get, the higher your rates will be.

You may have heard that once you’re over 55, car insurance rates will increase. This isn’t necessarily the case. If you take and pass an accident prevention course, which is available through AARP, you could get a discount of up to 10% . If you’ve recently retired, it’s likely you won’t be driving as much, and this can give you a discount of up to 5%.

Myth #2:  The color of your car will affect your rates.    

This is one of the most persistent, popular myths—red will raise rates, while white will keep them low. This isn’t true! The factors that auto insurance carriers take into consideration include the age of the car, make, model, engine size and the number of drivers on the policy.

Myth #3:  A speeding ticket will doom you.

One speeding ticket will not necessarily raise your rates. They are more likely to go up after two speeding tickets. What insurance companies will look at are your driving history, the amount of time you’ve been insured with that company and the speed you were driving when you got the ticket.

Myth #4:  Your car insurance will cover you if you’re in an accident and it’s a total loss.

Your car insurance will pay the fair market value of your car, less the depreciation. You would be responsible for the difference. To make sure you’re not hit with a cost you can’t afford, it’s a good idea to get GAP insurance, which will cover the difference between the fair market value and the balance left on your car loan.

Myth #5:  If your friend drives your car and has an accident, you won’t be held responsible.

Sorry, but you’re responsible no matter who drives. Insurance companies care only about the name on the policy.

Myth #6:  Convertibles cost more to insure because they’re more dangerous.

Not exactly. Convertibles are more expensive to insure because they’re more popular with car thieves. For that reason, you can expect to pay more than vehicles with regular roofs.

Myth #7: Comprehensive coverage means everything is covered.

This is one of the most misunderstood coverage types. Comprehensive auto insurance pays for events besides collisions. These include fire, theft, vandalism, weather and accidents involving animals. It does NOT cover personal property. For instance, if your laptop is crushed in an accident, you’ll need homeowner’s insurance, not auto insurance.

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.

Please contact Zawada Insurance Agency for details.

Zawada Insurance Agency, Inc. is a family-owned and operated independent insurance agency, located in Worcester, Massachusetts, serving central Massachusetts and beyond.