5 Common Auto Insurance Myths Debunked

Myth: Red cars cost more to insure.

Fact: The color of a car does not affect the cost of auto insurance. Insurance companies base their premiums on factors such as the make and model of the car, the driver's age and driving history, and the location of the vehicle.

Myth: Your insurance will cover you if you are at fault in an accident.

Fact: If you are at fault in an accident, your insurance will only cover the damages to the other party's vehicle and any injuries they sustain. You will need collision coverage to cover the damage to your own vehicle.

Myth: Your insurance will cover you if you use your car for business purposes.

Fact: Personal auto insurance policies generally do not cover business use of a vehicle. If you use your car for business purposes, you may need to purchase commercial auto insurance to ensure you are properly covered.

Myth: If you lend your car to someone, their insurance will cover any accidents they cause.

Fact: The insurance policy that covers the car is the primary policy, regardless of who is driving it. If someone borrows your car and gets into an accident, your insurance will be the first to pay out for any damages.

Myth: Older drivers always pay more for insurance.

Fact: While it is true that older drivers may see an increase in their insurance rates, it is not always the case. Many factors are considered when calculating insurance premiums, including driving history, location, and the make and model of the car. Older drivers with a clean driving record may actually see a decrease in their insurance rates.