Auto insurance myths lead to confusion around your current coverage and the coverage you really need. To help reduce confusion, we have compiled five common myths or misunderstandings and explain why they aren’t what they seem.
1: Red cars are more expensive to insure
There are a lot of misconceptions when it comes to red cars. The belief that red cars cost more to insure stems from the idea that red is associated with speed and risk-taking behavior. However, insurers don’t consider the color when calculating premiums. According to the Insurance Information Institute (III), insurance companies base rates on the car’s make, model, year, safety features, and the driver’s record.
2: Personal auto insurance also covers business use
Some drivers assume their personal auto insurance policy extends to business-related activities like food delivery or ridesharing apps. Most personal auto insurance policies exclude business use. If you’re using your car for work, you’ll likely need a commercial auto insurance policy or a rideshare endorsement. The National Association of Insurance Commissioners expands on this.
3: If someone drives your car, their auto insurance covers accidents
Another auto insurance myth is if someone else drives your car and has an accident, their insurance will cover the damages. In most cases, insurance follows the car, not the driver. The only type of coverage that does not follow the car is Personal Injury Protection, which is required by law in Florida. An exception would be if your policy limits are exceeded. The driver’s insurance may act as secondary coverage in that case.
4: Getting a ticket will automatically increase your premiums
Nobody likes getting a ticket, but can a ticket spike your insurance premiums? The answer is yes and no. Ticket type and driving record determine how much your rates will rise. A parking ticket with a clean driving record will result in fewer increases than a speeding ticket when you have a history of speeding tickets. In general, having a clean driving record reduces the impact of a single driving infraction on your auto insurance costs.
5: Comprehensive coverage includes everything
The last auto insurance myth we will debunk is that comprehensive coverage includes everything. The term comprehensive is misleading in this case. This coverage is limited to specific scenarios like theft, vandalism, fire, and natural disasters. To ensure complete protection, you’ll need a combination of comprehensive, collision, and liability insurance.
Learning the reality behind these auto insurance myths can help you understand your coverage. Work with independent insurance agents like Domain Insurance for even more confidence. We will help you understand your coverage, how much you need, and what you don’t. Contact us or call (239) 610-1116 to learn more.
