Due to several auto insurance myths, it may be difficult to understand what your car insurance actually covers. Here are the top auto insurance myths that you must know about before buying insurance.
1. The Color of My Car Affects Insurance Rates
Insurance companies don’t consider the car’s color when deciding your monthly premiums. They set their rates based on the cost of repair or replacement of damaged parts of your car.
2. The Property Inside the Car Is Covered
A widespread myth about auto insurance is that personal items are covered under your policy. If you leave your laptop inside your car and your car is damaged or stolen, your insurance company will not cover any damage to your laptop.
3. Auto Insurance Is Costlier for Older Drivers
Many insurance companies will lower the rates for older people if they complete an accident prevention course. Auto insurance tends to be more expensive for younger and inexperienced drivers.
4. I Don’t Need a New Policy for a New Car
Another auto insurance myth is that you can continue with your old policy for your new car. However, even if you just paid your latest premium for the previous policy, your insurer will issue a new one for a new vehicle.
5. Personal Auto Insurance Covers Business Use of Car
If you carry business operations in your vehicle, you need to get business insurance that covers damage to your car. Always be honest with your carrier, because if they find out that you use your vehicle for commercial purposes, they may cancel your policy.
These are the most common myths about auto insurance that you should know. If you have additional questions about auto insurance, contact the experts at Mike Leonard Insurance Agency in Texas. We have many insurance carriers, including Kemper, MetLife, Nationwide, Travelers, Safeco Insurance, Progressive, and American Strategic Insurance, to help you find the right coverage.