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Most people still lack correct information when it comes to auto insurance. Here are
some common car insurance myths that you need to be aware of.

Car insurance myth 1: The insurance premium depends upon the color of the car.
Fact: Your car coverage policy does depend upon the make, model, its year of manufacture, the
size of its engine but definitely NOT upon the color of your car.

Myth 2 . If you use your own car for work and get involved in a car crash, your employer’s insurance will compensate for the damage done.
Fact: even if you use your personal car for business purpose, it is your personal
auto insurance that is liable for providing coverage to your vehicle. Your employer may
reimburse for the mileage but will not compensate for any loss incurred in an accident.
If you are using your personal ride for business purpose, make sure your policy provider
knows about it so that you could be offered the perfect coverage to suit your need.

Myth 3 . Parking tickets affects your insurance premium.
Fact: A license suspension due to unpaid fines may affect your auto insurance premiums but the
tickets of the parking lot will certainly not.

Myth 4: . Your car is driven by your friend and has an accident; his insurance will cover the loss.
Fact: Think before lending your car. When you are lending your car you are lending your
policy too. Any insurance claim made, will be made under your policy coverage. It does
not matter whether you are driving your car or not. If the car is insured in your name, your
policy is liable to compensate for all losses incurred.

Myth 5: Auto insurance premium rated depends upon the whims of the providers.
Fact: Not at all, the car insurance has important regulatory requirements. The companies must submit their auto premium rates to government agencies for approval before they offer the rates to their buyers.

Myth 6: New cars are more likely to be stolen
Fact: this is a car insurance myth. In fact, statistics show that old cars are more frequently stolen.
One of the reasons for this is the big market for used parts that exist in many states. Auto Part sellers might make more money by selling the parts than by selling a complete older car. Another reason for this phenomenon is that older cars are easier to steal.  Newer cars have more advanced locking and alarm systems. Thieves also know that many new cars have tracking devices installed to monitor location.
According to a National Insurance Crime Bureau report, the  most stolen cars in 2007 were:

  • Honda Civic 1995
  • Honda Accord 1991
  • Toyota Camry 1989
  • Ford F-150 pickup 1997
  • Chevrolet C/K 1500 pickup 1994
  • Acura Integra 1994

Myth 7: Getting more than one auto insurance quote saves you money by making you aware of the company offering the best coverage and the best prices
Fact: Well, this is actually not a myth, it is true!  Save money today by requesting multiple car quotes here