Myths Of Auto Insurance

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Avoiding Renter's Regret: Understanding Renter's Insurance Coverage

Moving into my first apartment brought along a whole series of new experiences. I didn't realize that the property insurance my landlord carried wouldn't cover my belongings. I was lucky to find out before anything happened, and I spent a lot of time researching the difference between renter's insurance and the property coverage for landlords. I built this site to share all of the information that I learned, including the insurance coverage best practices I picked up along the way. If you're new to renting and don't have any renter's insurance, I hope the information here helps you to see how it could benefit you and what you need to do to get it.

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Myths Of Auto Insurance

21 November 2014
 Categories: Insurance, Blog

Have you ever heard that driving a red car will increase your auto insurance premiums? If you are driving in a red car, you are more likely to speed and get in an accident right? Wrong. This is just one of the many myths that are floating around that relate to auto insurance. The truth is the color of your car has nothing to do with your insurance premium. Insurance companies are more concerned about driving habits, make, model, your age, and age of your vehicle.

There are several other myths that are important to understand about auto insurance. By understanding these myths, you will be able to better understand why you are paying the amount you are paying.

  1. Auto Insurance Follows the Driver. It is nice to think that if you let your friend borrow your car and they get in an accident, that your friend's insurance company will pay for the damages. This simply is not true. Auto insurance will follow the car and not the driver. This means that you will end up having to file a claim, pay the deductible and deal with the possibility that your insurance rates will more than likely go up.
  2. Your Car is Fully Protected from Theft and Damage. When obtaining auto insurance you can get liability insurance or comprehensive insurance. Liability insurance will cover damage that is done to another person when the accident is your fault. If your car is stolen or damaged by a falling tree, your car will not be covered. Comprehensive insurance coverage is usually required when you are leasing or financing the car. If something happens to your vehicle with this coverage, it will more than likely be covered. Make sure you have comprehensive insurance if you want to protect your own vehicle.
  3. Personal Property is Covered. Many people believe that if their property is stolen from their car or damaged in an accident that their auto insurance will cover it. This is usually not the case. It is important to make sure that expensive items are not left in your car. Oftentimes your home owners insurance will cover the theft or damaged items.

These are just some of the myths that have been floating around for many years. By understanding these myths, you can make a better decision when it comes time to purchase auto insurance. You will have peace of mind knowing that you have chosen the correct insurance. (For more information on auto insurance, contact a company such as Butler & Messier Insurance)