Everyone has probably heard at least one myth regarding auto insurance. Some myths result from facts that have been turned upside down and are now skewed, and others have no basis in reality. Here are a few hearsays about car insurance that are false.
"Color Matters"
It has been a long held belief by many people that if they buy a red car, there insurance will cost more than if they buy a car of any other color. This is not true. Insurance companies do not ask you about the color of your car when processing a quote.
"One Speeding Ticket Will Cause Insurance to Skyrocket"
In most cases getting one speeding ticket is not going to change anything about your insurance. Normally, you will have to get at least two speeding tickets before you will see an increase. There are special cases where this is not what happens. However, your driving history, length of time with the insurer, and how fast you were all play a role in determining if and how much your insurance will change.
"Cheaper Cars Cost Less to Insure"
Not necessarily. If you buy a cheap car with a large engine, or if your vehicle is particularly heavy, these and other reasons could result in insurance that is higher than a car that cost plenty more.
"Only the Bare Minimum Is Needed"
Some people believe that they only have to purchase the bare minimum of insurance to be covered. While most states have a bare minimum that is required, this minimum in most cases will not be enough to cover all the damage that may occur to your vehicle, others involved, or to your person in an accident. This could result in your personal assets being pursued.
"If I Wasn't Driving, I'm Not Responsible"
If someone else borrows your car and has an accident, most insurers will still find you liable. In most states the main insurance policy is the primary one responsible. In some cases if the policy does not cover all expenses, then the driver's insurance company will be responsible for reimbursing any auto repair and other damages.
