Dozens of myths surround the automotive industry. Some are ridiculous, while others get to victimize many car owners. In this situation, knowledge is power. Being informed is the key to identifying myths and knowing what’s best for you and your vehicle.
For this post, we will debunk some of these myths:
Myth: Your credit score has nothing to do with your insurance
This is 100% false. Your insurer will look into your credits score and rating in the process of calculating your premiums. Take note that if you have a poor credit score, you may pay more than someone who has an impressive credit record. It’s best to improve your credit score so you can save money from your car insurance.
Myth: The car color you choose will affect the cost of your premiums
Again, this is an unfounded statement. The color of your car doesn’t have anything to do with your premiums. Your insurer will base your premiums on the age of the vehicle, mileage, your credit score, engine size, your driving history, and so on. They will never use the color of your car to change the cost of your premiums. Sure, you will pay more with a new paint job, but it will not save you money from insurance.
Myth: The person who damaged your car is responsible for the repairs
Your car, your insurance. Regardless of whether your friend borrowed your vehicle and damaged it, it’s still your insurance that will pay the price. Take note that insurance policies apply to the car, not the person inside it, or driving it. So whoever is in your vehicle will not be responsible for the potential damages. Unless that person is willing to shoulder the out-of-pocket cost, it’s still you who’s accountable for the repairs.
Myth: Your insurer can revoke your coverage at any time.
Several state laws prohibit insurance companies from revoking a policy for no specific grounds. Usually, insurers are allowed to drop you off the policy if you’re not paying or if they proved that you’re trying to defraud them with a false claim. So if you pay regularly and you have a valid driver’s license, your insurer can’t ditch you for no reason.
Myth: Thieves don’t steal old cars, so comprehensive insurance isn’t needed
Thieves steal anything with value and that includes your old car. In fact, some criminals know the value of an old car, especially if it’s a rare model. Also, some old cars are no longer in production, so the spare parts for such models are in great demand in the market.
So even if you own an old vehicle, make sure that you have a comprehensive policy in place.
Myth: The items inside the car are covered by auto insurance automatically
The gadgets and other valuables you place inside your car will not be included automatically under your auto insurance policy. You need a personal protection policy if you want to secure these items. Take note that such coverage isn’t specific to the valuables in your car. It can be any item that you want to cover.