The Most Common Misconceptions About Auto Insurance

The Most Common Misconceptions About Auto Insurance

Purchasing a car can be exciting. However, finding the best insurance is challenging for many. Understanding the ins and outs of auto insurance can be hard, especially for first-time policyholders. Additionally, there are a lot of misconceptions that tend to be misleading.

What It Is

Car insurance is the best way to protect yourself from the financial burden caused by certain auto-related incidents. It covers damage to the vehicle, expenses incurred for medical bills for bodily injury, and liability for the injuries of other parties and property damage. 

In exchange for the payment of the premium, the insurance carrier will pay for losses covered by your policy. There are various coverage types out there. Finding the most accurate policy will depend on the individual circumstances and needs of a driver.

 

Common Misconceptions

Generally, common misconceptions about auto insurance are related to the cost. Since there is no one-size-fits-all policy, premiums will vary per person. Because of this, a lot of people believe certain myths they hear, thinking that those will help them save a few bucks.

Here are some of the most common misconceptions that drivers should be aware of:

 

  • Owning a red car increases the premium.While the source of this myth is unknown, most people are aware of it. In fact, many drivers believe it. However, the color of the vehicle has nothing to do with insurance costs.

 

  • Getting the state minimum requirement is enough.Drivers purchase car insurance for protection. While a state's minimum requirement is basic coverage, it may not be suitable for all your needs. It will not protect the vehicle itself, either. To find the best policy, a driver should request a personalized quote based on their circumstances and preferences.

 

  • The premium rate for men is higher.Another common myth that people believe is that men pay higher premiums than women because they are seen as riskier drivers. That may be true for some individuals, but it is not always the case. Other factors such as driving history will affect the premium. Additionally, some states like California do not allow the use of gender as a metric to calculate the cost of car insurance premiums.

 

  • Car insurance always includes the cost of a rental car in case of an accident.As stated earlier, the coverage of a policy depends on the level of protection that the driver purchased. For instance, getting a state minimum policy only is not enough to cover expenses for rental cars. You will have to include an additional rider for this. Most carriers call this the rental reimbursement coverage.

 

  • A small lapse in coverage is okay.Believing this misconception can lead to bigger issues later on. If an accident occurs when the policy has lapsed, the policyholder will not get the benefits that the insurance comes with. It can also have an impact on premium rates.

 

Getting Help

Finding the best auto insurance policy requires proper research and understanding of various options. If you need help in getting sufficient coverage, contact our team of experts at Panorama Insurance Agency.

 

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