Most drivers today understand the need for auto insurance. But what isn’t as widely understood is what auto insurance typically covers or what factors play a role in determining your insurance costs. While these questions can certainly be answered be the experts at your insurance center, it may also help to take a look at today’s post. We’re dispelling some common (yet totally misguided) beliefs pertaining to car insurance.
MYTH: The color of your car impacts your auto insurance premiums.
Truth: Whether you’ve got a red Mustang or a black mini-van, it’s not the color of your car that will determine how much you pay for your insurance needs. The idea here is that flashy cars are more likely to be pulled over on the road or to be stolen by criminals, so it makes sense that someone might assume that a bold color could be a warning sign to insurers. But actually, it has no bearing on your premiums. What does matter is the vehicle make, model, age, value, engine size, and a few other factors. You won’t be penalized for liking a particular hue.
MYTH: If your friend borrows your car and is involved in a crash, your friend’s insurance policy will cover the damages.
Truth: As anyone at an insurance center will tell you, the policy follows the car — not the driver. So if someone borrows your vehicle and is involved in a crash, it’s the owner of the vehicle (you!) who will be responsible for dealing with the damages. Any claim being filed would go through your insurance company, even though your actions weren’t what caused the damages. Unless you’re on a shared auto insurance policy with other family members who also drive your vehicle, this can be a good reason not to trust anyone else to drive your car.
MYTH: If I have comprehensive insurance coverage, I’m covered for virtually anything.
Truth: The word “comprehensive” can be a bit misleading. While it may sound as if it’s all-encompassing, there are actually some major scenarios that are left out of comprehensive auto insurance coverage. Comprehensive insurance protects against causes of damage to your car other than accidents — such as theft, vandalism, and other natural disasters. This kind of coverage is great when the unexpected should occur, especially if you’re not in your vehicle at the time. However, it’s really best when coupled with collision insurance. When the two are combined, both you and your car will be protected against most situations.
MYTH: I don’t need comprehensive auto insurance for theft if I drive an older vehicle.
Truth: Comprehensive auto insurance is typically optional. But that doesn’t mean you should opt out, even if you own a car you don’t think will attract attention. While there were over 268 million registered vehicles on U.S. roads during 2016, it actually isn’t the unique vehicles that are most tempting to criminals. Statistics show that it’s actually the run-of-the-mill cars that tend to be most enticing. If there are more of those models available on the roads, their parts have more value. So while it’s certainly essential for rare and classic cars to be properly insured against theft, this type of criminal activity should also be a concern for those who drive common cars.
Now that you know the truth behind these misconceptions, you’ll feel much more informed when you talk to someone at your insurance center about obtaining or changing a policy. We’re known as a source for car insurance Portland motorists trust — and we’re here to help make certain you’re protected. For more information, please get in touch with us today.