For many first-time auto insurance purchasers, we only know of what we’ve heard from family, friends, etc., but these opinions and myths are often misconceived as facts. Have you heard that your premiums will automatically increase after an accident or new cars cost more to insure? Although they seemed justified and true, they are simply fables with a firm explanation behind it.
Dismissing long tale told myths is essential in both the auto insurance and car purchasing process. These myths come in different forms; they may slither through insurance rates, insurance coverage, and more.
Common myths include the following:
Myth: My auto premiums will automatically increase after I’m involved in a car accident.
Fact: This is a common myth that many (including veteran car insurance buyers) are still persuaded to believe. But the fact is a car accident does not automatically generate increased rates; different factors such as driving history are considered to determine your rate.
Myth: Red cars cost more to insure.
Fact: Don’t let this myth deter you from purchasing your dream red or black car. Insurance car rates are determined by your driving history, credit history and make/model/year of your car, but not by the color of your car. This myth might have derived from several surveys that inconclusively drew a correlation between fast drivers and red cars.
Myth: A comprehensive car insurance policy covers everything.
Fact: Each insurance agency and policy varies; make sure to thoroughly review what your policy covers and doesn’t cover. Gaps in coverage may include the following (not limited to):
- Medical payments
- Emergency roadside service (towing, battery service, labor, etc.)
- Rental car
- Personal Property
Myth: If I lent my car to a friend and he/she are involved in accident, I’m covered, by his/her insurance.
Fact: Generally, the auto insurance policy follows the car and not the driver. Your damages will primarily be covered by your insurance policy, but your friend’s policy serves as a secondary source.
Nobody provides Bloomfield, MI auto insurance like we do at Capital Insurance. We specialize in helping our clients cover personal automobiles against unforeseen damages and injuries. As independent agents, we can shop with dozens of insurers licensed to set you up with the most affordable rates and most appropriate coverages.
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