When considering some auto insurance options, you are likely to come across a ton of myths about car insurance in your daily social circles especially from friends, family, and co-workers who also have little or no knowledge about how auto insurance works. A quick search on the internet doesn’t help as there are even more car insurance myths floating around especially on the leading social media platforms. The following are some of the common myths about auto insurance debunked.

Myth 1: The color of my vehicle has an impact on my insurance rate.

Contrary to many people’s beliefs, the color of your vehicle does not factor in the premium at all. Auto insurance companies determine their rates based on car features like the make, model, engine size, body type, age, repair costs, safety record, and the popularity of the car with thieves. They also look at the drivers’ details such as their driving record, their credit history, among others.

Myth 2: My car insurance company can cancel my policy any time they want.

State laws prohibit all insurance companies from canceling any policy before the expiry of the policy term without adequate grounds to do so. Such grounds include fraud or failure to pay the insurance premiums. If you have a valid driver’s license and pay your premiums on time, you have nothing to worry about.

Myth 3: My car is old, so I don’t need comprehensive insurance for theft.

Modern cars may look better, go faster, and have a better sale price than old cars, but most criminals will prefer to steal an old car than newer cars. According to car theft records, most thieves go for the older and popular vehicles such as a Toyota Camry or Honda Accord as opposed to the newer models. This is because the popular old cars have a higher demand for spare parts. This works for most car thieves who strip the cars for parts then sell them. Another reason why thieves avoid new cars is that they are packed with technology that can be used to track them and capture them.

Myth 4: If another person drives your car, their insurance will cover any damages if they are involved in an accident.

If you allow a person to drive your car and that person gets in an accident, it will be your insurance- not the person’s policy- that covers the damage. The auto insurance policy covering your vehicle is usually considered as the primary insurance. Consequently, your insurer is responsible for any damages regardless of who was behind the wheel.

Myth 5: The phone or laptop in your car is covered by auto insurance.

Any personal belongings like phones, laptops, shopping, or others are not covered by your vehicle’s auto insurance. Such items are typically covered by your personal property insurance.

Myth 6: My personal auto insurance policy covers business use of my car.

Self-employed people who use their car for business-related tasks such as hauling supplies, making deliveries, or other business related activities cannot rely on auto insurance to protect you. You need to purchase business vehicle insurance in this case.

start-quotes.com is an online insurance referral site. While we match consumers with insurance carriers and agents across the US, we are not an insurance carrier or insurance agent. No insurance companies sponsor, endorse, or are in any way affiliated with start-quotes.com. We do not issue insurance quotes, contracts, or bind coverage ourselves, nor do we endorse or recommend any companies or specific types of insurance policies. We advise all consumers to compare rates and fees as they can vary between insurance providers and may also depend on the city and state you live in, among other factors. All trademarks, copyrights, and logos are property of their respective owners. All articles on this website are for information purposes only. Your access to this website is subject to its Terms & Conditions and Privacy Policy.