The confusing car insurance industry is ripe for myths to be created.
Car insurance is one of those life topics that most everyone is confused about. The only ones that seem to understand it are usually the ones that work in the insurance industry.
And when something is confusing, people usually start to make things up to help them understand it better. This is where insurance myths come from.
Car Insurance Myth 1: State Minimums Protect Your Car
The state minimum car insurance is usually just liability insurance in most states, which is the coverage that pays if you hurt someone or damage their property. It does not cover damages to your own vehicle.
If you want to fully protect your vehicle for all types of damage, you need to purchase both collision and comprehensive coverage. Collision coverage will pay for the damages to your vehicle from an accident and comprehensive will pay for all of the other things that can damage your car that is not a collision.
Car Insurance Myth 2: Red Cars Pay More
The color of your vehicle has nothing to do with how much you pay for insurance. In fact, most insurance companies don’t even ask what color your vehicle it. So go ahead and get that red car you have always wanted.
Car Insurance Myth 3: Your Business Use Is Covered
Your car insurance does not protect you if you are self-employed and using your vehicle for business purposes.
So if you are using your vehicle for delivering items, delivering people, or anything else you can make money doing with your vehicle, you need to talk to your car insurance agent. Many people take on delivery jobs not knowing this and if they were to get into and accident your personal insurance will most likely deny any claims.
Car Insurance Myth 4: Your Coverage Follows You
The car insurance that you purchase is for your vehicle. That’s why you are asked all the details about your vehicle when you get a quote.
If you were to get into an accident while you were driving another person’s vehicle their insurance coverage would pay for the accident, not yours. And the same goes if you let someone else drive your car and they get into an accident, your insurance pays for the accident.
Basically, the car insurance follows the vehicle not the driver.
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