We’ve all heard a few old wives tales. Like the one about cracking your knuckles and how doing so will give you arthritis. It has no basis in fact by the way, so go knock yourself out. Old wives tales, myths, urban legends- call them what you will – generally crop up around things that are important to us but we can’t quite understand. Given that auto insurance is mandatory in our country, significantly affects our wallets every month, and is actually a pretty complicated, confusing subject, it’s no wonder that there are quite a few auto insurance myths out there. Today we’ll debunk 10 of the most common and misleading auto insurance myths.
Myth 1: I’ll save money by going for the cheapest quote available.
Fact: When you buy auto insurance, you’re basically purchasing peace of mind and the knowledge that an accident won’t mean the end of your savings and a lifetime of debt. However to ensure that you will be covered for any losses or damages, it’s better to opt for automobile insurance quotes from a company that has a reputation to maintain and the means to pay out when you make a claim. Opting for an obscure, fly-by-night insurance company just because it gave you the cheapest quote is a bad idea. If it rejects your claim, or does not have the funds to pay out, you could potentially lose a fortune.
Myth 2: All I need is Minimum Liability.
Fact: Yes and No. Minimum liability is all you need in order to drive legally. However, it is definitely not all you need if you want to be covered in the event of an accident. Minimum liability is the minimum car insurance you are required to purchase to drive legally, and the amount varies from state to state. But there are many accident scenarios which are not covered by minimum liability. Liability only covers damage caused by your car to others’. It does not cover damages to or theft of your own car. At the very least, it is advisable to get comprehensive and collision coverage as well as liability.
Myth 3: Red cars cost more to insure.
Fact: No. The color of your car has no bearing on your insurance rates. The make, model, and condition of your car do affect your insurance rates, but the color does not.
Myth 4: Rusty, old cars are cheaper to insure.
Fact: An old, deteriorating car will cost more to maintain, will need repairs more frequently, and has less security devices. This makes it a greater risk for insurance companies, and so they usually charge higher premiums on these cars. Second hand cars that are only a couple of years old and are in a good condition tend to fetch the best car insurance rates.
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