Explaining the Truth Behind Common Car Insurance Myths

Don’t let car insurance misconceptions affect your coverage.

If you are trying to secure auto insurance in Carrollton, Texas, then you might be overwhelmed by all the new information.  The last thing that you need is for car insurance myths to cast doubt over your coverage decisions.  To ensure that mistruths do not compromise your coverage, here is the truth behind some of the most common car insurance myths.

Myth1: “The Color of Your Car Affects Your Coverage Costs”

While there is a rumor that brightly colored cars, such as red or yellow, are more expensive to insure, this simply isn’t the case.  Your auto insurance premiums are based on an array of factors such as the car’s make, model, sticker price, the likelihood of theft, and so on.  However, the actual color of the car is not one of the things that auto insurers take into account.

Myth 2: “State Minimums Are Enough to Fully Protect You”

Every state in the country requires drivers to carry some minimum about of auto liability insurance.  However, these minimums are not necessarily enough to cover the full cost of an auto accident.  Oftentimes, state-minimums will only cover a small portion of accident costs, leaving the responsible driver to pay for the remaining expenses out-of-pocket.  To ensure that you have the comprehensive liability coverage that you need, insurance experts recommend carrying a minimum of $100,000 bodily injury protection per person, and $300,000 per accident.

Myth 3: “Personal Auto Insurance Covers Business Use of Your Car”

If you are self-employed and use your car to complete business purposes, then your personal insurance may not offer you the coverage that you need.  Many personal auto policies specifically exclude coverage when the car is being used in a professional capacity.  You may need to secure a commercial vehicle insurance policy to secure the coverage that you need.

This is the truth behind some of the most popular car insurance myths.  Do you have more questions about your auto insurance in Carrollton, Texas?  If so, then contact the experts at Mike Leonard Insurance Agency.  Our dedicated team is eager to find you the right coverage from one of our many carriers including: Kemper, MetLife, Nationwide, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance.