Nowadays it is mandatory that you carry minimum amounts of auto insurance on all registered vehicles at all times. Without this coverage you not only put yourself into a great financial bind, you also risk going to jail, accruing stiff fines and even the suspension of your driving privileges. None of these things are very desirable!
It is oftentimes car insurance myths that hold people back from obtaining the coverage they need. these myths, while untrue, seem to be convincing enough that person after person takes the information to heart. Knowing car insurance myths ahead of time is far more important than believing these mistruths and potentially causing yourself trouble.
Take a look at a few common car insurance myths and learn the truth. After all, they say the truth can set you free, and when it is time to protect yourself, it is certainly a statement you can count on.
Myth One: No Fault, Not my Fault
If you reside in what is known as a ‘no fault’ insurance state, do not confuse this statement to mean that you are automatically not responsible for the accident. No fault states pay regardless of who is the cause of the accident.
Myth Two: I am not Responsible –My Friend was Driving
It is a common belief that, if you loan your vehicle out to someone and they have an accident, this person is responsible for any damages incurred in an accident. This is a complete myth; you are responsible for your vehicle at all times.
Myth Three: Insurance Costs to Much
It is true that auto insurance is an added expense. However, an auto accident occurs every 10 seconds in the US, and most all of us will be involved in at least one accident during our lifetime. We never know when that time will come, and being protected is not an option. To get the lowest rates on coverage, do not allow insurance coverage to lapse, compare carriers once per year and before you start a policy, and make sure that you have a good credit score.
Myth Four: Red Cars Cost more to Insure
About ¼ of drivers believe this to be true, but it is a myth. In fact, the color of the vehicle is probably not even a question the insurance company will ask you. The color of your car does not affect the cost of your payments!
These are some of the most common car insurance myths out there. We hope that you use this information to your benefit in the future, and do make sure to take the time to familiarize yourself with the other myths that are out there.