For some reason, these myths persist, even though there is no basis for believing them.
1. Because the police write more citations for them, red cars cost more to insure.
While more aggressive drivers may, in fact, choose brighter colors, statistics do not bear out the claim that red cars get more tickets than any other color. So, insuring a red car costs no more than any other color.
2. My insurance will cover damage to my car.
Auto coverage comes in different forms, the most common of which is liability insurance. That covers only the damage you do to someone else’s property, not your own. For that protection you have to buy comprehensive and collision coverage, as well.
3. No-fault insurance implies that no one is at fault.
This kind of coverage actually absolves no one of fault. It simply ensures that all parties in the accident will be covered by insurance. The fault remains the same, and if the police decide you were at fault, you are still at fault. But your no-fault policy will pay medical expenses and any lost wages because of injuries received in the accident.
4. My car insurance covers me while driving another person’s car.
No, the insurance stays with the vehicle, and not with the driver. So, if you drive someone else’s car, their insurance is what would have to pay for damages in the event of an accident.
5. My personal auto policy covers me while driving for business purposes.
It does only if you have purchased additional business-use coverage. Your basic policy typically does not cover business-related use of the vehicle.
6. If my car is declared a total loss, I get back what I owe on the car.
Not if you owe more than it’s worth. You are paid what the vehicle is worth, so if you own more than that, you will be stuck for the difference unless you have purchased additional policy provisions that cover this gap.
7. Auto insurance companies all rate the same way.
No, there is no standard way that is used by all companies. It pays to shop for the best coverage at the best premium rate. That is one of the primary advantages of buying insurance from a top quality independent agency like Reta Insurance. Whether it is for auto, business, health, or life insurance, we shop for you, so you don’t have to.
8. My car is an older one, so I don’t really need comprehensive coverage for theft.
In fact, thieves many times target popular older vehicles since the parts from these cars are easier to sell.
9. My auto policy will cover the loss of my computer stolen from my car.
You could be covered, but it won’t be by your auto policy. Your homeowners insurance frequently covers this type of loss.
10. Both the oldest and the youngest drivers have higher premium rates because these groups have the most accidents.
This is true, in general, for the youngest drivers, but older drivers frequently qualify for various discounts. And even young drivers have ways to reduce their rates.
For more information on the truths of auto insurance, or for a quote on automobile, heath, life, or business insurance, contact Reta Insurance Agency in Worth, serving our many satisfied clients in Illinois and Wisconsin.