When purchasing an auto policy, it’s important to understand the factors that affect your policy and coverage.
Unfortunately, there’s a lot of bad information out there. Lucky for you, we believe that the more you know about your coverage, the better off you are.
So we are here to bust those myths!
Myth 1: Color determines the price of auto insurance
It doesn’t matter whether your car is “Pull Me Over Red” or “Hide In Plain Sight White” – the color doesn’t actually factor into your insurance premium. However, the price of your auto insurance is based on many factors, such the vehicles make, model, body type, engine size and the age of the vehicle. Insurers also take into account the age, driving record and sometimes even the credit history of the driver.
Actually, it’s quite the opposite. Older drivers may be eligible for special discounts. For example, those over 55 years old can get a discount on their auto insurance premium if they successfully complete an accident prevention course. These courses are available through AAA and AARP. Older driver programs and discounts vary by state, insurance carrier, and driver age, so if you think you may qualify, give us a call!
This is true BUT only if you have comprehensive and collision coverage. You need these coverages to fully protect your vehicle from all types of damage.
Myth 4: You only need the minimum amount of auto liability insurance required by law
We’ve covered this once but it’s so important so here we are again! Almost every state requires you to buy a minimum amount of auto liability coverage but buying only the minimum amount of liability means you are likely to pay more out-of-pocket for losses after an accident—and those costs may be steep. You would be surprised about how inexpensive doubling or even tripling your property damage limit on your auto insurance premium could be.
Rule of thumb: Insurance follows the car, not the driver. This means that the car owner’s insurance company must pay for damages caused by an accident, regardless of who is driving. Watch our new video to learn more about this!
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