For years, these common auto insurance myths have left policyholders misinformed.
Myth #1. Insurance is higher for red cars. Car color has no bearing on premium amounts.
Myth #2. New cars have higher theft rates. Studies actually show that older cars have higher theft rates.
Myth #3.. Auto insurance covers theft, vandalism, hail or fire damage. Auto insurance covers accidents. Comprehensive coverage covers other claims.
Myth #4. Auto insurance will pay the balance of my loan or lease if my car is totaled. Car insurance will pay the current value of the car. To be covered for the amount owed you would need to have GAP insurance.
Myth #5.. Rental car costs are included in my auto policy. Rental coverage can be added for an additional premium.
Myth #6.. Sports car owners pay a higher premiums because they get more tickets. Although the type of car you drive may affect your premiums, sports cars don’t cost more because their drivers get more tickets.
Don’t let common misconceptions about insurance leave you with a policy that doesn’t provide the necessary coverage.
Contact Mike Leonard Insurance to have us review your policy or provide a quote for a new policy. Ask us about Texas home insurance too!