9 Auto Insurance Myths

Have you ever heard any of these statements?

“Don’t get a red car or your insurance will go through the roof!”

“I’m not worried about letting him drive my car. If he gets into an accident, his insurance will cover it!”

There are plenty of myths out there about auto insurance. Not understanding how your policy works could leave you with a nasty surprise after a big accident. Take a look at these 9 myths and find out the truth about auto insurance.

The Color of Your Car Matters

The color of your car isn’t a factor in determining your auto insurance rates. The type of car you have does matter: make, model, body type, engine, and size. The age of your vehicle matters, too.

Your Credit Score Doesn’t Matter

Whether you pay your bills on time is definitely a factor in determining how much you’ll pay for auto insurance. Your credit score is used to calculate your insurance score which determines the rate you will pay. Low credit scores mean low insurance scores and higher premiums.

Your Policy Covers Everything, Not Just Accidents

If your car is stolen or vandalized or its damaged in a really bad storm, and you assume your insurance will take care of everything, check your policy first. Theft, vandalization, and damage from falling limbs, bad weather, or flooding are covered only if you have comprehensive and collision coverage.

The Driver’s Insurance Covers an Accident

Did you let your friend drive your car? Did they get into an accident? If you thought it was no big deal and their insurance would pay out, think again. Your car is covered by your auto insurance policy; it doesn’t matter who was driving. You’ll need to file a claim even if someone other than you drove.

Your Policy Could Get Cancelled at Any Time

It is very rare for an insurance company to cancel a policy in the middle of a term. Typically, it only happens for non-payment or when fraud has been discovered. Getting into an accident in the middle of your current policy term won’t mean the end of your coverage.

Your Personal Property is Covered

You were in a bad accident, and the other driver rear-ended you, destroying the computer and new television in your trunk. Don’t expect your auto insurance to cover the cost for those things. Personal property doesn’t fall under your policy.

Your Car Loan Will Get Paid Off After an Accident

Your car is fairly new and you still have a note on it. If an accident totals your vehicle, don’t expect the insurance company to cut a check to pay off your loan. You’ll receive fair market value for your vehicle, which is usually lower than your loan amount. Consider adding GAP insurance which will make up the difference between what you receive and what you owe.

Don’t Report Accidents to Keep Your Premiums Down

This is a philosophy that can work well under your homeowner’s insurance policy, but isn’t easy to do with auto insurance. If the accident or damage involves only you and a tree or sign post, you’re probably fine. If another driver was involved, they may file a claim with their insurance company and your insurance company will be notified. Likewise, if you receive a ticket for the accident, that will show up on your records, too. Either way, your premiums will probably go up.

Rental Cars are Included in Your Insurance

You’re in an accident, and your vehicle is out of commission for a few days. You’re not worried because you’ll get a rental car and the insurance will cover it. Right? Rentals aren’t always automatically included in your coverage. You’ll need to purchase additional coverage for a rental.

If you’ve got questions about your current Massachusetts auto insurance policy or if you want to make sure you have the right coverage, contact Click Insurance today and let us help protect you and your vehicle.