Auto Insurance Myths Debunked

Navigating auto insurance can be tricky, and it’s easy to fall for common misconceptions. Let’s debunk some of the most prevalent myths to help you make informed decisions.

5 Auto Insurance Myths

The following are five common auto insurance myths:

1. The color of your car affects your insurance rate. The color of your car does not impact your insurance premium. Insurance providers typically base rates on factors such as the car’s make, model, age and safety features, as well as your driving history.
2. Full coverage means everything is covered. Many people assume that “full coverage” means their insurance will cover any possible scenario. In reality, full coverage typically includes liability, collision and comprehensive insurance, but it doesn’t cover everything. For instance, it may not include roadside assistance or rental car reimbursement.
3. Older cars don’t need comprehensive coverage. It’s a common belief that older cars don’t require comprehensive coverage. However, if your car is valuable or you rely on it heavily, comprehensive coverage can protect you from noncollision-related damage such as theft, vandalism or weather events.
4. Your credit score doesn’t affect your insurance premium. Your credit score can play a role in determining your insurance premiums. Insurers frequently rely on credit-based insurance scores to assess the probability of claims. Consequently, a higher credit score can result in lower insurance costs.
5. You can negotiate your premium. Insurance premiums are typically determined by complex algorithms and state regulations, making them nonnegotiable. However, you can lower your premium by adjusting your coverage, applying discounts or maintaining a clean driving record.

Learn More

Understanding these myths can help you navigate the world of auto insurance more effectively. For auto insurance near you, contact Axcess Insurance.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.