Common Car Insurance Myths Debunked to Unfold the Truth

Many car insurance myths revolve around the internet, from what it covers to how much it costs. As a car owner, it is vital to have a complete understanding of the policy to make a well-informed decision concerning the coverages you may need. That is why we have debunked some common car insurance myths to help you learn the actual facts about the policy and act accordingly.

Myth 1 – Insuring Red Cars Remains Expensive

The color of the car does not matter. Your auto insurance cost is only based on factors such as your car’s make, model, age, condition, price, repair/replacement costs, safety, etc.

Myth 2 – Comprehensive Coverage Pays for Everything

Comprehensive coverage helps to repair or replace your car if it is stolen or damaged by falling objects, natural disasters, fire, vandalism, or animals. It will not cover damages caused to your car by collision or personal belongings that are stolen along with the car.

Myth 3 – Crashes and Tickets Increase Your Premiums

Drivers engaging in reckless driving usually pay more. However, getting a single traffic ticket or being involved in an accident will not increase your rate, especially if your violation is minor and your driving record is clean. Multiple violations in a short period may increase your rates indeed.

Myth 4 – Car Insurance for You and Family Members Is Enough

If you have been hit by an uninsured motorist, you have to pay for the incurred car repairs and medical bills out of pocket. However, having underinsured/uninsured motorists’ coverage will keep you covered against accidents caused by drivers without sufficient liability coverage or insurance at all.

Myth 5 – A Short Coverage Lapse Does Not Impact Your Rates

A short lapse in your car insurance coverage, whether accidental or intentional, may significantly impact your rate. Some insurance companies offer a grace period, so you can avoid penalties if you pay your premium before the end of that period. However, a lapse going beyond the grace period may affect your rate in the future.

Myth 6 – Auto Insurance Rates Are Negotiable

You cannot negotiate rates with your provider, but you can lower your premiums if you qualify for discounts (usually provided for taking defensive driving courses and having safety features in the car). You can also bundle your car insurance with other insurance policies to save some costs.

Myth 7 – You Don’t Have to Make Car Loan Payments If Your Car Is Totaled

Whether or not your car is in a drivable condition, it is crucial to make monthly payments to your lender until you repay the total amount you have borrowed. This condition applies even if your car is totaled following an accident.

You will still be covered in some circumstances even after your insurance provider totals your car, including:

  • If you are at fault in an accident
  • If you are non-at-fault in an accident
  • If your car is totaled after non-accident-related damage

However, in all these situations, your insurance company only pays for your car’s actual cash value (deducting depreciation), and you are liable for paying the remaining (if any).

Myth 8 – Your Credit Score Will Not Impact Your Rates

Your credit score will also factor in a while determining your premiums. Insurance providers usually review your credit history to see your credit history’s length and whether you make payments on time or have any outstanding debts. People with good credit scores often end up paying less.

Now, you know what your car insurance covers, what factors affect its rate and what doesn’t, and what factors are controllable to reduce your premiums, so you can choose the right yet affordable coverage for you.

Stay Safe on Roads with CF&P Insurance

Whether you need a best-in-class car insurance policy or have any questions concerning the coverage, contact our insurance agents today at CF&P Insurance Brokers, and we will help you.

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