Car insurance is a source of confusion for many drivers. Some may not know how auto insurance works, how much they should expect to be paying for it, or what it covers. If this is you, it’s crucial that you learn more about auto insurance before you end up paying more for it than you need to. To help, we’ve compiled a list of six common myths about auto insurance.
Myth #1: Personal Auto Insurance Covers Your Car for Both Personal and Business Use
If you’re using your vehicle to conduct business, your personal auto insurance may not cover you if you get into an accident. This is especially true if you’re driving a heavy-duty vehicle.
Myth #2: The Expensive the Car, the Expensive the Insurance
There is a wide range of things that determine how much you’ll pay for auto insurance. Although it’s true that sometimes more expensive cars have higher premiums, that’s not always the case. Insurers look at what’s called the “loss history” of your vehicle and go from there.
Myth #3: Car Color Affects Insurance Rates
The color of your vehicle doesn’t mean anything when it comes to how much your premium will be for auto insurance. Some makes and models tend to generate more claims than others, and insurance companies will use that to help determine how much to charge you for car insurance.
Myth #4: Your Car Insurance Rates Will Skyrocket After a Ticket
Just because you get a ticket doesn’t mean that your rate will increase. If you get a ticket for something minor, chances are that your insurance rate will stay the same. The type of ticket you receive will determine if your rates go up, and by how much.
Myth #5: Insurance Companies Can Cancel Your Policy at Any Time
It is prohibited for insurance companies to cancel your insurance policy in the middle of your term unless they have suitable grounds to do so (such as non-payment or fraud). They can, however, decide not to renew your policy.
Myth #6: Older Cars Don’t Need Comprehensive Insurance for Theft
Some people believe that because they have an older car, thieves won’t want to steal them, but this isn’t necessarily true. Thieves steal popular older cars for their parts so that they can sell them.
Take The Confusion Out of Auto Insurance
After debunking some of these popular myths it’s time to get an auto insurance policy from a company that will help you make sense of it all. That’s where Freedom Insurance Agency comes in. As a Carroll County auto insurance agency, we’ll work with you to make sure you understand everything related to your policy and answer any additional questions you may have. Call or contact us today to get a quote.