5 Common Car Insurance Myths

When buying an auto insurance policy, it’s important to know all the facts. For instance, what factors will ultimately impact your premium rate? Over the years, drivers have gotten a lot of bad information, which is why we want to clear the air. Don’t let these common car insurance myths affect your understanding of car insurance coverage.

Myth #1: Car color influences price

This is probably one of the biggest misconceptions when it comes to the price of your auto insurance premium. But we’re here to set the record straight. Color never factors in to insurance costs like some drivers have grown to believe. For years, people associated the red car paint, or more specifically, a red sports car as more expensive to insure. In actuality, car color has no impact. That is to say, there are certain components that have an effect on auto policies, which include make, model, engine size, age of vehicle, repair costs, and safety.

Myth #2: Credit won’t affect your insurance rate

Having a good credit score pretty much influences all financial aspects of your life, and car insurance is no exception. While credit history isn’t a huge determinant of your premium rate, car insurance companies do like to take it into consideration. This is particularly the case when you want to purchase a new policy or renew existing coverage. Overall, you’ll want to take notice of your credit score before you sit down with an insurance agent.

Myth #3: If another person drives your car and gets into an accident, their insurance will cover the damages

This is one of those car insurance myths that dupes most drivers. While you might assume lending a car to a friend is no big deal, if an accident occurs, the car owner’s insurance must cover the costs. Yes, that means you! It’s a common misconception that auto policies are geared more toward the driver. But in fact, car insurance is designed to protect your vehicle, no matter who is in the driver seat. Next time, you might not be so lax on letting a friend of family member borrow your ride.

Myth #4: It costs more to insure a car when you near retirement age

Older drivers assume a decrease in dexterity skills and general age puts them at risk of a higher premium. While this may be true in some cases due to personal driving records, older drivers are also eligible for a number of special discounts. AAA and AARP offer resources and exclusive deals for their members. In addition, you can sign up and save big by taking part in a defensive driving course or retired military discount. Watch the video below to get the latest insight on affordable insurance policies for seniors in 2022:

Myth #5: Personal auto insurance covers the business use of your vehicle

Nowadays, there are plenty of self-employed professionals and independent contractors who rely on their cars for business. But if you use your personal vehicle for work-related tasks, don’t assume you’ll always be covered. It’s important to inform your insurance provider on how often you use your vehicle for business and personal drives. That way, you’ll know exactly how much coverage you need. And hopefully, get you the best deal on an auto policy.

Overview of common car insurance myths

By debunking these common car insurance myths, we hope drivers will feel better prepared next time they go to purchase, change, or renew a policy. Although so many factors influence an auto insurance premium, these ones certainly do not. The key takeaway: you can save on car insurance with the right information at hand. While your insurance provider will have a wealth of knowledge to offer, it always helps to do a little fact-finding yourself.