Myths concerning car insurance can make it difficult to figure out what is true and what is not. For your own peace of mind, you need to get down to the truth. Talking to your insurance agent will help eliminate the myths and give you the information you need. Don’t let myths affect how you insure your vehicle; instead, learn the facts before making any decision.
Here are 6 common car insurance myths that you need to be aware of:
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A Traffic Ticket Will Boost Your Premiums
In most cases, one traffic ticket won’t affect your premium. If you have a good driving record and have no citations or accidents on your record, a single ticket is not indicative of your average driving habits. If the number of tickets begins to increase, then your premiums will rise as well.
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Expensive Cars Cost More to Insure
Expensive cars don’t require costly insurance policies. If you have a good credit score and driving record, you can affordably insure almost any type of vehicle. This includes the more expensive cars that are often considered to be “luxury” vehicles.
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Your Insurance Will Replace a Totaled Car
When you total your car, you might think your insurance company will replace it. That isn’t always the case. The fact is, you may not get the replacement cost of your vehicle. Instead, you may receive a check for the book value of your vehicle. This amount can be lower than what it will cost to replace your vehicle.
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If You Use Your Car for Business, Your Personal Insurance Will Cover the Damages
Many people use their car for business without realizing that their personal policy will not cover their business losses if an accident or other event occurs. The fact is, if items associated with your business are stolen or damaged, your personal coverage may not cover them.
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State-mandated Coverage Is Enough
The myth that having the state-mandated amount of insurance is enough can leave you holding the bag for a much larger payout. If the payout for an accident exceeds the minimum amount you have for coverage, you will be responsible for paying the difference. The amount it takes to make you legal on the road is rarely sufficient to cover a minor accident that includes damage and injuries.
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Credit Scores Don’t Affect Your Premiums
Your credit scores do affect your insurance premiums. Insurance companies believe that if you are responsible for your finances, you will also be more responsible with your vehicle. Therefore, maintaining a good credit rating will get you more affordable insurance rates.
Want to learn more about car insurance? The agents at Family Financial Insurance Group are ready to debunk the myths that have you so confused. Call today to schedule a consultation. We can clear up any confusion you may have related to your car insurance. We can help you work through any obstacles you may face when dealing with these myths.