Auto Insurance Myths That are Needing to be Retired
Something we should all face together; there are few topics more misunderstood than car insurance. Even in an industry built on facts, a few myths seem impossible to shake. Whether they come from well-meaning friends or social media “experts,” misinformation about auto insurance can lead to costly assumptions. Let’s clear up some of the most common misunderstandings once and for all.
“Red cars cost more to insure.”
We as an insurance company do not care what color your car is, nor do many of us actually ask. Rates are based on the make, model, year, engine size, location, driver history and many other factors but not your aesthetic choices. Keep driving that cherry-red mustang with peace of mind.
“My insurance covers everything if my car is totaled.”
Have you recently called your insurance agent, to ask for ‘full coverage’, only for us to try and advise that Full Coverage is not really a thing? We are doing our best to try and steer people out of that frame of mind, so that when something happens, they aren’t blindsided. When most people say ‘full coverage’ they are wanting coverage such as comprehensive and collision, which is what protects you. However, there are additional coverages such as GAP, Transportation Expense, Roadside Service, Personal articles, and several others that can be put on policies.
“Older cars don’t need physical damage coverage.”
Sometimes true, sometimes not. If your car still has decent value or you can’t easily replace it, you’ll want to look into potentially keeping comp and collision. Dropping it too soon might save you pennies now and cost you thousands later.
“If someone borrows my car, their insurance covers it.”
Nope again. Insurance usually follows the car, not the driver. If your friend backs into a moose (because Alaska…), your policy is the one that is primary, not theirs. So be careful who you are allowing to drive your vehicle, and make sure you are okay with the fact that if something happens, it’s your insurance that is primary.
“Minimum coverage is all I need.”
That’s like saying a seatbelt is enough protection in a rollover. State minimums are exactly that – minimums. A serious accident could wipe out your savings faster than your deductible clears! The minimum property damage for the State of Alaska is $25,000, could you imagine being at fault and totaling a $60,000 vehicle? Where do you think the other $35,000 is going to come from?
Bottom Line
Don’t let half-truths drive your decisions. Talk to your agent, and make sure your policy fits you, not your neighbors’ Facebook advice. A quick conversation can make all the difference between being ‘insured’ and being protected.
