Debunking Auto Insurance Myths

A quick web search on auto insurance brings back around 200 million results. There is insurance information everywhere, but is it all accurate? While some of the tidbits you’ve heard about auto insurance and how it works are correct, many are not. Here at Acuity, we want to help debunk some of these myths.

Here are five auto insurance myths that we are busting.

Myth: The color of the car affects the car insurance rate.

Truth: The color of the car has no affect on your insurance rate. Red cars aren’t more expensive to insure than black cars. The make and model are car details that determine your rate, not the color. 

Myth: Comprehensive insurance covers mechanical problems.

Truth: Mechanical problems are often considered normal wear and tear and are not covered by comprehensive coverage. Comprehensive coverage will pay for damage to your car that is caused by an event other than a collision, such as theft, vandalism, hail, fire, or water. If you have trouble with your transmission, it would not be covered by comprehensive insurance.

Myth: If the car is totaled the insurance company will pay off what is still owed on the lease or loan.

Truth: This is not always the case. Acuity has a lease or loan gap coverage option that will pay off your lease or loan, but not all carriers offer this coverage. Some insurance companies leave you on the hook to pay for the amount still owed on your lease or loan.

Myth: The minimum amount of auto liability insurance that your state requires will keep you sufficiently covered.

Truth: Chances are good you will need more than your state’s minimum requirements. Most serious accidents cost more than the minimum limits, and you’re left holding the bag when costs exceed your coverage limits—which can easily happen in today’s lawsuit-happy society.

Myth: Insurance premiums go up as drivers get older because they are more likely to be involved in accidents.

Truth: The opposite is often true. Older drivers are generally more experienced and take fewer risks. In addition, most insurance companies offer discounts to mature drivers who complete a safe driving course.

Do any of these sound familiar to you? Are there other auto insurance myths you have heard that you’re wondering about? Comment below with any questions you have, and we will answer them in a timely manner. Also, don’t forget to get a free, online auto insurance quote from Acuity.