Auto insurance Myths – how much do you really know about car insurance? Don’t worry Adopt-A-Highway is here to help & set the record straight on a few auto insurance myths.
Fiction: Red cars cost more to insure.
FACT: Red, purple, blue, black – color is NOT a factor used to calculate car insurance rates. Things used to calculate insurance rates include the year, make, model, body type, engine size and age of your car, as well as driving record of those being insured.
Fiction: My car insurance rates should be similar to my neighbor’s, sister’s, aunt’s or uncle’s rates.
FACT: Car insurance rates are determined individually based on age, driving record and type of vehicle. Each person’s situation is different, so insurance rates will definitely vary.
Fiction: “No-fault insurance means it’s not my fault!”
FACT: No-fault insurance typically (state rules vary) requires your auto insurance company to pay medical expenses & lost wages for injuries due to a car accident, regardless of who is at fault. If you caused the accident, you are not off the hook. The insurance companies will decide who is to blame, and that driver would be liable for repairs and damages.
Fiction: Small cars are the cheapest to insure.
FACT: Small cars do not have the cheapest rates because they are often chosen by younger, inexperienced drivers who submit more claims. Also, injury claims are higher from small cars, which lack the weight and protection offered by larger vehicles. Small and mid-size SUVs and minivans are the cheapest to insure.
Fiction: Thieves prefer to steal new cars.
FACT: Older cars are more valued among thieves because the demand used parts in high. If you have an older car and you want to cover car theft, you should purchase comprehensive auto coverage.