A lot of things people believe about auto insurance simply are not true. And believing something that isn’t true can complicate the process of buying insurance.
1. Red cars cost more to insure.
It may be true that people who drive more aggressively choose brightly colored paint, but in fact, arrest statistics do not support the claim that red cars get more tickets than any other color.
2. Your insurance covers damage to your car.
Auto coverage comes in different forms, the most common of which is liability insurance. That covers only the damage you do to someone else’s property, not your own. For that protection you have to buy comprehensive and collision coverage, as well.
3. No-fault insurance means no one is at fault.
The purpose of this coverage is not to absolve everyone of actual fault. It is to ensure that all parties will be covered by someone’s insurance. The fault for an accident remains the same. If the police say you are at fault, you are still at fault. But if you had purchased a no-fault policy, your insurance company will pay medical expenses and lost wages for injuries. The best news here, is that the new federal health care law will ensure that everyone has a separate coverage for medical costs, reducing the need for auto policies to cover these expenses.
4. Vehicle driver is responsible, not the owner.
If neighbor Joe borrows your car (with your permission, of course), it will be your insurance that pays in the event of an accident, not Joe’s. The insurance stays with the vehicle, not the driver.
5. Your personal policy covers driving for business purposes.
If you are a delivery person not employed by the company, or otherwise transporting supplies, materials, or equipment as part of your chosen work, you will have to purchase additional insurance to be covered while doing so. Any business-designated duties will require additional coverage.
6. In a total loss, I will get back what I still owe on the car.
If you owe more than the car is worth, you may be stuck for the difference. But there are additional policy provisions you can buy to cover this gap.
7. All auto insurance companies rate the same ways.
In fact, companies do not all rate the same ways, and that is why it pays to shop around. That is one of the significant advantages to buying from an independent agent like Gant Insurance, who will do the shopping for you for the best insurance deal available.
8. I drive an older car, so I don’t need comprehensive insurance coverage for theft.
In fact, many times thieves target older popular vehicles because they have a better chance of selling the parts they strip off the car.
9. My laptop stolen out of my car is covered by my auto policy.
Nope. If you are covered at all, it would be through the safety net provided by your homeowners policy, not your auto insurance. And a deductible will probably apply.
10. Because they are more likely to have accidents, both new drivers and older ones have to pay higher rates.
This is not necessarily true. In general, inexperienced drivers do have higher rates. But older drivers are frequently given discounts. There are even ways to reduce the costs for young drivers.
For all your insurance questions, contact Gant Insurance Agency in McKinney, serving satisfied clients with agents throughout Texas.