Common Myths About Car Insurance Coverage

30 Jul Common Myths About Car Insurance Coverage

Whenever we buy a new car, auto insurance is essential to have there and then. It helps to protect the vehicle against damage and theft, while safeguarding your pocket from high expenses. While auto insurance is one of the most bought policies in America, it continues to have a lot of misconceptions surrounding it, steering motorists in the wrong direction of coverage. Take a look at just a few of the common myths about car coverage and the truth behind them.

Myth: Accident claims make your rates increase.

Truth: Although it’s true that an incident claim might have an impact on your rates, one accident doesn’t mean that you will see your premiums skyrocket instantly. Insurance companies consider the severity of the incident and the frequency of your claims to determine your premium.

Myth: I have a red car so my auto insurance rates will be higher.

Truth: Even if it is true that red cars get pulled over more by the police than their silver counterparts, insuring your red, silver, grey, black, green, or white car can result in similar rates. Most insurance companies will not even ask what color vehicle you are insuring. Instead, they base their rates on the car’s make, model, engine size, age, market value, and more.

Myth: If a friend borrows my car, he or she will be responsible for damages they cause.

Truth: If you let a friend borrow your vehicle, ensure that they are comfortable in the vehicle and have a solid driving history. If they do get involved in an accident, it’s possible your insurance will need to cover the damages.

Do you need to find the right car insurance for your company? If so, then contact the experts at Dougherty Insurance. We want to make sure that you have the coverage you need – it’s our job to help you! Contact us today for unparalleled insurance in Illinois, Wisconsin, and Indiana.