At Plymouth Rock, we want to make insurance easy. There’s a lot to car insurance, and there are many misconceptions about it. We’re here to set the record straight. Here are eight common car insurance myths you may have heard and the reality about them.
8 Car insurance myths debunked
Red cars cost more to insure
The red car insurance myth is one of the biggest insurance misconceptions. Many people believe that red cars cost more to insure. While red is a popular color for sports cars, paint color is not a factor used in insurance rating. Factors your car insurance company actually considers typically include the car’s make, model, engine power and age, as well as your driving history.
You just need minimum coverage
Almost every state requires car owners to buy minimum auto insurance liability. The minimum coverages give you just that- the bare minimum. With medical treatment and auto repair costs on the rise, the minimum coverage will often be insufficient to pay for injuries or damages you cause and in most states provides no coverage for damage to your own property.
Coverage for damage to your own vehicle is not typically included in the state minimums coverages, so carrying only the minimum coverage often means your vehicle is not protected.
There are other ways to lower your car insurance costs without compromising on coverage. With Plymouth Rock’s exclusive discounts and benefits, you can drive assured knowing you’re covered at a price that won’t break the bank.
You can’t switch insurance companies in the middle of a policy
If you need to switch car insurance companies, you can actually make the change before your current policy expires. Just be sure that you don’t have any lapses in coverage. Lapses in coverage can make purchasing insurance more costly in the future. Keep in mind that some insurance companies may charge an early cancellation fee.
Full coverage covers everything
The phrase “full coverage” can be a bit misleading. When people say “full coverage”, they typically mean that an insurance policy has both comprehensive and collision coverage for the car.
Having “full coverage” doesn’t mean your insurance company will pay for everything that happens on the road. Your coverage limits and policy exclusions will still apply, and you still have to pay your deductible for coverages that have one.
There are many other kinds of optional add-on coverages, like roadside assistance, that may not be included in your “full coverage” policy. Check with your insurance company to see exactly what your car insurance policy covers and what optional coverages they offer.
Car insurance covers personal items
Comprehensive and collision coverage pay for damage to your own vehicle, usually subject to a deductible. However, these coverages will not cover personal items inside your car. For example, if your car is stolen and you carry comprehensive coverage, insurance will cover theft of the vehicle but not any of the items inside when it was stolen. Your homeowners or renters insurance policy might cover any items stolen or damaged. You may also be able to purchase optional personal property coverage to help protect your things inside your car.
Smaller cars are cheaper to insure
As previously mentioned, your insurance company considers many attributes about the car you drive. A smaller car is not inherently cheaper to insure than a larger one. How safe it is and how much it costs to repair, as well as your driving record, are among the factors used to rate your insurance.
Thieves prefer to steal new cars
Thieves do not typically steal cars to keep for themselves. Instead, they steal them to sell for parts. Older cars with large production runs are prime targets, because their parts are easier to sell. Some older cars may have simpler locking systems or are missing security features, which makes them easier to steal.
The likelihood of your car being stolen is something insurance companies consider when determining your premium. If your car is statistically more likely to be stolen, you can expect your insurance costs to reflect that.
You can save money on insurance if your car has anti-theft measures installed. You can even retrofit older vehicles with modern security technology to take advantage of Plymouth Rock’s anti-theft discounts.
Your insurance company will pay off your loan if your car is totaled
Car insurance companies will pay no more than the fair market value of your car under comprehensive and collision coverages if it’s totaled. If it gets totaled shortly after you bought it, this amount may be significantly lower than the balance of your loan. It’s still your responsibility to pay the difference.
Owing money on a car on the way to a junkyard is not an enviable position to be in. You can protect your investment with Loan/Lease Gap coverage from Plymouth Rock. This pays for the difference between what your car is worth and what you still owe on your loan or lease. This optional coverage can help free you from having to make payments on a car you can no longer drive. Ask a Plymouth Rock insurance specialist for details.
Conclusion: Car insurance myths
Car insurance can seem difficult to understand, but it doesn’t have to be. If you have questions about insurance, give us a call. One of our insurance experts will be happy to guide you through your coverage options. If you’re looking for even more ways to save, we can help you with that, too!
